India, along with Brazil, Argentina and some other nations, has rejected an informal attempt by the European Union (EU) and Canada to work towards a global investment agreement at the World Trade Organisation (WTO)-level that would incorporate a contentious Investor-State Dispute Settlement (ISDS) mechanism.
Reasons for rejection of global investment agreement :Contentious mechanism
1. The ISDS mechanism has become contentious as it permits companies to drag governments to international arbitration without exhausting the local remedies and claim huge amounts as compensation citing losses they suffered due to reasons, including policy changes.
2. The EU and Canada have inked an investment pact that has incorporated the contentious ISDS. They wanted the investment pact to be the template for a similar multilateral agreement. India summarily rejected such an idea.
Japan also opposed the idea on the grounds of the costs involved in international arbitration.
India Pushed for Services agreement at WTO : Trade Facilitation in Services (TFS) Agreement
India pushed for discussions on its proposal for a Trade Facilitation in Services (TFS) Agreement at the WTO-level. The pact, among other things, aims to facilitate easier movement of skilled workers and professionals across borders for short-term work.