New Delhi: India is opposing an informal proposal made by the EU and Canada about a global investment pact with an investor-to-state dispute settlement (ISDS) provision at WTO. The issue was discussed at an "informal meeting" of key WTO members, including India, China, Brazil, Japan and Australia, in Davos last week.
"We rejected it (the attempt made by the EU and Canada) completely. We want anything to do with investments to be a bilateral thing... We do not believe in making investments a subject of multilateral disputes," Commerce and Industry Minister Nirmala Sitharaman said. The minister said she is not in favour of the "contentious" investor-to-state dispute settlement (ISDS) mechanisms, which is part of a bilateral agreement between the European Union (EU) and Canada.
Under ISDS, corporates can take sovereign governments to international arbitration for resolution of disputes. Both these countries want other WTO members to agree to this mechanism and the template to resolve investor disputes at the multi-lateral level. "There is no way, we will have investment treaty in which companies can take the sovereign or even the regional governments to court. Anything with regard to investments, we wanted to be settled by the domestic laws and courts and only after that... appeal outside," she said.
Nirmala said other WTO member countries, including Argentina and Brazil, too did not support the move. "So at this stage, to have this template for a multi-lateral approach to investment may be immature," she said.
However, the minister added that India put its view "informally" as this was an informal discussion of WTO member countries. On WTO issues, she said the countries discussed the forthcoming ministerial conference in Argentina in December.