BRICS to discuss steps to boost investment
BRICS nations will consider a proposal
- To frame principles that will guide investment policymaking, to boost investment in Brazil, Russia, India, China and South Africa
- Promote e-commerce among the group of emerging economies
In addition, BRICS contact group on Economic and Trade issues which will meet in Beijing to deliberate on creating a national single window for trade facilitation.
China’s stand on the issue:
Push for investment facilitation:
- The proposal put forward by Beijing on the Guiding Principles for BRICS Investment Policymaking is similar to the Guiding Principles that were agreed at the G20 Trade Ministers summit in Shanghai
- China is also at the forefront for a global pact on investment facilitation and promotion at the World Trade Organization (WTO) and is pushing for a global investment pact at the WTO Ministerial Conference meeting, scheduled in December 2017 at Buenos Aires (Argentina)
- China now wants the BRICS nations to adopt these principles and enter into an investment facilitation agreement
Focus on e-commerce:
- China is leading e-commerce discussions at the global level.
- It has proposed that the discussions at WTO should focus on trade driven by the internet
- It should also include services that are directly linked to such trade like payment and logistics
- There is also a proposal to create a common payment gateway to promote e-commerce among the BRICS nations
G20 Guiding Principles for Global Investment Policymaking:
- The guiding principles states that the governments around the world should avoid protectionism and create investment policies that are open, non-discriminatory, transparent and predictable
- Dispute settlement procedures should be fair, transparent and incorporate appropriate safeguards
India’s stand on the issue:
At the WTO-level India had recently rejected a proposal by the European Union and Canada for a global investment pact.
- The pact incorporates the contentious Investor-State Dispute Settlement (ISDS) mechanism
- Under the mechanism firms can drag governments to international arbitration without exhausting the available local remedies
- They can also seek huge compensation from the concerned governments