Written by The Banking Post
Bangladesh has formally joined the Investment Facilitation for Development (IFD) Agreement at the World Trade Organization ministerial conference, marking its first participation in a plurilateral trade initiative.
The decision, announced at the WTO’s 14th Ministerial Conference in Yaoundé, signals Dhaka’s growing engagement in global investment frameworks. With Bangladesh’s entry, the number of co-sponsors of the agreement has risen to 129.
The IFD is a plurilateral accord—meaning it is adopted by a group of willing countries rather than all WTO members—and aims to simplify investment procedures, improve transparency, and attract foreign investment.
Bangladesh’s Cabinet had earlier approved joining the agreement, paving the way for its formal announcement at the global forum.
Officials say the move could help the country strengthen its investment climate, particularly as it prepares for post-LDC challenges and seeks to deepen integration into the global economy.
However, the agreement remains outside the WTO’s formal legal framework due to opposition from some members, notably India, which argues that such deals risk undermining the organisation’s core principles.
“Incorporation of the IFD Agreement risks eroding the functional limits of the WTO,” India’s commerce minister said, while indicating openness to further discussions under broader reform efforts.
Despite the divide, many countries—led by China—are pushing to include the agreement as an Annex 4 plurilateral accord within the WTO structure.
Trade experts see Bangladesh’s move as a strategic step.
“As plurilateral agreements gain momentum, it is important for Bangladesh to stay engaged and participate where beneficial,” a former trade negotiator said.
He noted that while such agreements come with obligations, they also offer opportunities to attract investment and strengthen economic competitiveness if managed effectively.
The development comes as WTO members continue negotiations on a range of issues, including investment, e-commerce and subsidies, amid ongoing efforts to reform the global trading system.
