WTO reform prospects clouded by investment deal block, sources say
The Investment Facilitation for Development, which aims to reduce bureaucratic hurdles to encourage foreign direct investment, particularly in developing and least-developed countries, was blocked by India, South Africa and Turkey, they said, asking to remain anonymous due to the sensitivity of the matter.
The WTO requires full consensus from all 166 members for a measure to be included in its formal rulebook. The measure has been formally backed by 127 members.
Trade sources described the latest block as a "disturbing" signal, as WTO members weigh sweeping reforms to revitalise the global trade body, which has been challenged by a wave of tariffs imposed by the Trump administration.
Proponents of reforms are pushing for changes to the consensus-based decision-making process in particular to stop countries from blocking measures and bogging down initiatives.
India, South Africa and Turkey were not immediately available for comment.
"The integration of the IFD into the WTO framework is a litmus test for members' willingness to turn reform discussions into practical action," a trade delegate told Reuters, describing it as disappointing.
The EU delegation told members that the IFD did not hurt anyone's interest and that blocking it would "endanger" the multilateral trade system, according to a statement seen by Reuters.
India and South Africa previously opposed the inclusion of the measure at high-level meetings, including the 2025 ministerial meeting in Abu Dhabi, where it failed to gain consensus.
Keith Rockwell, a trade analyst at the Hinrich Foundation and former WTO communications director, told Reuters that India's continued obstruction of the IFD agreement is partly a tactic to gain leverage on food security negotiations.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
16 hours ago
- Straits Times
Pakistan says it's close to US trade deal, Washington gives no timeline
WASHINGTON - Pakistani Foreign Minister Ishaq Dar said on Friday the United States and Pakistan were "very close" to a trade deal that could come within days, but comments from the U.S. after Dar met with Secretary of State Marco Rubio mentioned no timeline. "I think we are very close to finalizing a deal with U.S. Our teams have been here in Washington, discussing, having virtual meetings and a committee has been tasked by the prime minister to fine-tune now," Dar said in a discussion at the Atlantic Council think tank in Washington. "It's not going to be months, not even weeks, I would say (just) days," he said. Under U.S. President Donald Trump, Washington has attempted to renegotiate trade agreements with many countries that he threatened with tariffs over what he calls unfair trade relations. Many economists dispute Trump's characterization. The U.S. State Department and Pakistan's foreign ministry, in separate statements after Rubio's meeting with Dar, said the two stressed in their discussion the importance of expanding trade and ties in critical minerals and mining. A post by Rubio on X after the meeting and the State Department's statement mentioned no timeline for finalizing a trade deal. The Pakistan foreign ministry also said Dar "appreciated the pivotal role" by Trump and Rubio "in de-escalating tensions between Pakistan and India by facilitating a ceasefire." The State Department statement did not mention India. Trump has repeatedly taken credit for the India-Pakistan ceasefire he announced on social media on May 10 after Washington held talks with both sides. India disputes Trump's claims that the ceasefire resulted from his intervention and trade threats. India's position is that New Delhi and Islamabad must resolve problems directly with no outside involvement. An April 22 militant attack in India-administered Kashmir killed 26 men and sparked heavy fighting between the nuclear-armed Asian neighbors in the latest escalation of a decades-old rivalry. India struck Pakistan on May 7 and the two nations exchanged hostilities, killing dozens across three days. The ceasefire was declared on May 10. New Delhi blamed the April attack on Pakistan, which denied responsibility and called for a neutral investigation. Washington condemned the attack but did not blame Islamabad. REUTERS
CNA
20 hours ago
- CNA
Wall Street gains, dollar firms ahead of a big week for market risk
NEW YORK :U.S. stocks and the dollar firmed on Friday as investors girded themselves for the week ahead, which includes a Federal Reserve policy meeting, crucial corporate results and U.S. President Donald Trump's August 1 deadline for negotiating trade deals. "There's increasing confidence that the economy won't be derailed by tariffs," said Thomas Martin, Senior Portfolio Manager at GLOBALT in Atlanta. "In the meantime, companies are reporting good earnings, the economic numbers are coming in within the range and people want to own stocks. They don't want to miss out." All three indexes were modestly green in early trading, and were on course for weekly gains. Gold lost some shine, pressured by the dollar as healthy risk appetites lured investors away from the safe-haven metal. With Trump's negotiating deadline just a week away, the U.S. and its trading partners are scrambling to reach trade agreements, with European negotiators heartened by the deal with Japan announced on Tuesday. Intel's shares INTC.O dropped 9.4 per cent after the chipmaker forecast steeper-than-expected quarterly losses and said it had halted or scrapped new factory projects in the U.S. and Europe. More than a third of the companies in the S&P 500 have posted results, 80 per cent of which have beaten estimates, according to LSEG data. Analysts now expect year-on-year second-quarter earnings growth of 7.7 per cent, compared with the 5.8 per cent estimate as of July 1. Four members of the Magnificent 7 group of Artificial Intelligence-related megacap stocks - Amazon, Apple, Meta and Microsoft are on next week's earnings docket, and market participants will scrutinize the companies' conference calls for signs that AI expenditures are beginning to pay off and whether tariff-related uncertainties continue to weigh on forward guidance. U.S. economic data released on Friday showed an unexpected decline in new orders for core capital goods, as companies hold back on big ticket purchases amid the fog of ongoing trade talks. The Fed is expected to convene next week for a two-day monetary policy meeting, which is expected to culminate in a decision to let its federal funds target rate stand in the 4.25 per cent to 4.50 per cent range. The meeting comes at a moment in which Fed Chair Jerome Powell is facing criticism from Trump for not cutting rates. "The Fed is going to do what it's going to do and Powell is going to stay in his job," Martin added. "The economy is doing great, so they really don't need to lower short-term interest rates." "Inflation is still a question, so they're better off not lowering rates if they don't have to," Martin said. The Dow Jones Industrial Average rose 227.98 points, or 0.51 per cent, to 44,921.89, the S&P 500 rose 30.79 points, or 0.48 per cent, to 6,394.14 and the Nasdaq Composite rose 84.09 points, or 0.40 per cent, to 21,141.65. European shares settled lower as market participants parsed mixed corporate earnings and awaited developments in the U.S.-EU trade negotiations. MSCI's gauge of stocks across the globe rose 0.47 points, or 0.05 per cent, to 941.82. The pan-European STOXX 600 index fell 0.29 per cent, while Europe's broad FTSEurofirst 300 index fell 5.79 points, or 0.27 per cent Emerging market stocks fell 10.43 points, or 0.82 per cent, to 1,256.86. MSCI's broadest index of Asia-Pacific shares outside Japan closed lower by 0.93 per cent, to 661.15, while Japan's Nikkei fell 370.11 points, or 0.88 per cent, to 41,456.23. U.S. Treasury yields drifted higher in a subdued trading as investors braced for a data-heavy week, updates on U.S. trade talks, and a Federal Reserve policy meeting. The yield on benchmark U.S. 10-year notes fell 2.4 basis points to 4.384 per cent, from 4.408 per cent late on Thursday. The 30-year bond yield fell 2.3 basis points to 4.9265 per cent from 4.949 per cent late on Thursday. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 1 basis points to 3.915 per cent, from 3.925 per cent late on Thursday. The dollar gained strength but remained on course for its biggest drop in a month as investors focused on economic data, tariff negotiations and central bank meetings on the calendar for next week. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.25 per cent to 97.69, with the euro down 0.14 per cent at $1.1738. Against the Japanese yen, the dollar strengthened 0.42 per cent to 147.62. In cryptocurrencies, bitcoin fell 1.94 per cent to $116,468.56. Ethereum declined 2.42 per cent to $3,649.42. Oil prices softened as investors mulled downbeat economic news and signs of growing supply, despite optimism that U.S. trade deals could boost global economic growth. U.S. crude fell 1.32 per cent to $65.16 per barrel, while Brent fell to $68.44 per barrel, down 1.07 per cent on the day. Gold prices dropped in opposition to the firming dollar, amid signs of progress in U.S.-EU trade talks. Spot gold fell 0.87 per cent to $3,338.54 an ounce. U.S. gold futures fell 1.24 per cent to $3,329.10 an ounce.
CNA
a day ago
- CNA
Iran, European powers hold first direct nuclear talks since airstrikes as UN deadline nears
ISTANBUL: Iran and European powers held 'serious, frank, and detailed' talks on Friday (Jul 25) over Tehran's nuclear programme, as both sides seek to avoid a lapse of UN sanctions that could be automatically reimposed in October. The meeting in Istanbul marked the first direct contact between Iranian officials and Western diplomats since last month's Israeli and US airstrikes on Iran. It lasted about four hours at Iran's consulate and was attended by representatives from the European Union and the E3 group: France, Britain, and Germany. IRAN AND EUROPE EXCHANGE PROPOSALS Iranian Deputy Foreign Minister Kazem Gharibabadi said both sides presented specific ideas relating to nuclear inspections and sanctions relief. 'While seriously criticising their stances regarding the recent war of aggression against our people, we explained our principled positions, including on the so-called snapback mechanism,' he said. 'It was agreed that consultations on this matter will continue.' The E3 nations, along with China and Russia, remain parties to the 2015 nuclear deal from which the United States withdrew in 2018. That agreement had lifted international sanctions on Iran in exchange for curbs on its nuclear activities. SANCTIONS DEADLINE LOOMING The talks focused on the expiry of United Nations Security Council Resolution 2231, which underpins the 2015 nuclear deal and is due to lapse on Oct 18. If no action is taken by then, all UN sanctions on Iran will be lifted. However, the E3 could trigger the 'snapback' mechanism at least 30 days before that date, reimposing sanctions on sectors including energy, banking, and defence. To allow time for this process, European diplomats have set the end of August as a soft deadline to determine whether diplomacy with Iran can be revived. Officials say Tehran would need to make clear commitments, including eventual talks with Washington, renewed cooperation with the UN nuclear watchdog, and accounting for roughly 400 kg of near-weapons-grade uranium reportedly unaccounted for since last month's strikes. IRAN RESISTS PRESSURE TO EXTEND UN RESOLUTION Tehran has resisted the idea of extending Resolution 2231. A foreign ministry spokesperson called such suggestions 'meaningless and baseless' prior to the Istanbul meeting. Nevertheless, International Atomic Energy Agency (IAEA) Director General Rafael Grossi expressed cautious optimism. Speaking in Singapore, he said inspection visits could resume this year if technical arrangements are made. 'We need to agree on where to go, how to do it. We need to listen to Iran in terms of what they consider should be the precautions to be taken,' Grossi said. US STRIKES AND NUCLEAR FACILITIES The United States carried out five rounds of talks with Iran prior to June's military action, which President Donald Trump said had 'obliterated' Iran's alleged nuclear weapons ambitions. While Tehran maintains its programme is strictly civilian, NBC News has reported that a US intelligence review concluded that only one of the three targeted sites was heavily damaged, while the other two suffered less extensive harm. Iran has consistently denied it seeks to build a nuclear weapon.
