China says new FDI norms violate WTO
#GS3 #Economy #InternationalOrganisations
Two days after the government tweaked its FDI policy to make its approval mandatory for firms in neighbouring countries to invest in Indian companies, China claimed that this violates the WTO’s “principle of non-discrimination”.
The principle of non-discrimination
- Most-favoured-nation (MFN): Treating other people equally Under the WTO agreements, countries cannot normally discriminate between their trading partners. Grant someone a special favour (such as a lower customs duty rate for one of their products) and you have to do the same for all other WTO members.
National treatment: Treating foreigners and locals equally Imported and locally-produced goods should be treated equally — at least after the foreign goods have entered the market. The same should apply to foreign and domestic services, and to foreign and local trademarks, copyrights and patents.