The political economy of an investment facilitation for development agreement in Brazil, India, and China

This chapter examines the politics of the negotiations surrounding the Investment Facilitation for Development (IFD) Agreement within the World Trade Organization (WTO). Historically, developing and emerging economies have opposed multilateral investment rules over concerns that they would favor developed countries and limit policy space. However, proposals for the IFD Agreement have gained momentum, thanks in part to Global South members such as Brazil and China, which have also advanced their preferences through bilateral and regional arrangements outside of the WTO. Despite promises to focus on technical aspects and avoid politically charged topics, negotiations continue to raise objections from other emerging economies such as India and South Africa over extending the WTO’s mandate and preserving policy space. The chapter compares the competing interests and strategies of India, Brazil, and China as they attempt to establish investment facilitation standards inside and outside of the WTO. While the standards they promote are similar, their political motivations may create obstacles to the consolidation of a final multilateral agreement.