India Fights Bid To Trammel Right To Regulate Investment

This view will be articulated at the coming two-day meet to be held in the Capital to thrash out a common viewpoint for developing countries on emerging trade issues. Nineteen developing countries have been invited for the meet, of which 10 have confirmed participation, including Pakistan and Bangladesh.

Among the issues listed on the agenda are investment, labour standards, government procurement (bribery and corruption) and competition policy and rules. Some of these issues are likely to figure at the ministerial conference in December.

Sources revealed that at a meeting in Singapore earlier this year on this issue, Indian negotiators for the first time clearly said that "any relinquishment of this right will be totally unacceptable in countries like India, both on political as well as economic grounds".

Sources point out that while there are several benign possibilities flowing from transnational investment, there are several negative effects of excessive dependence on transnational corporations (TNCs). .

Sources further argue that "too much of a good thing is bad" and that a balance has to be struck on the extent of investments permitted.

They also highlight that several countries maintain elaborate immigration policies to safeguard their citizens against unchecked inflow of foreign nationals for several reasons. Entry of trained professionals into several countries are subject to a "need test".

"It is, therefore, surprising that some countries are promoting the idea of evolving an MAI with the principal elements of right of establishment, national treatment and dispute settlement to ensure effective enforcement of TNC rights against decisions of national governments," said sources.