Investment Facilitation Talks Explore future
Agreement Integration into WTO Legal Structure
WTO members taking part in the discussions
on investment facilitation for development (IFD) made steady progress in negotiating
a future Agreement at a new round of meetings on 4-5 October 2021. The meetings
saw a high level of engagement and active participation, with delegations engaging
in a conceptual discussion on the integration of the future IFD Agreement into the
WTO legal structure, based on a series of guiding questions.
The discussion responded to a request in July by delegations
asking the coordinator, Ambassador Mathias Francke of
Chile, to have the opportunity to exchange views on how to integrate the future
negotiated outcome into the legal architecture of the WTO. A first “academic discussion”
on this subject took place in the margins of the intersessional meeting on 31 May
— 1 June.
A series of questions prepared by the coordinator guided the
deliberations. Among other things, participants discussed whether the issue of the
legal architecture should be addressed jointly with other relevant joint statement
initiatives (JSIs). They also discussed what pathway participating members would
favour for the legal integration of the IFD Agreement
— a stand-alone agreement, a scheduling approach (with members providing schedules
of commitments), or any other innovative option.
Participants discussed the different options bearing in mind
the specificities of the IFD Agreement, including its scope (applies to both goods
and services); the “erga omnes” nature
of most provisions (they would be implemented de facto on a non-discriminatory basis);
and the strong development component (calling for comprehensive technical assistance
and capacity building for its implementation).
While participants stated that their preferred option would
be to achieve a “multilateral outcome” benefiting all WTO members (ideally an Agreement
under Annex 1 of the Agreement Establishing the WTO, applied on an MFN-basis), they
also remained open to consider other options. At the same time, participants highlighted
that their priority, at this stage, was to advance as much as possible on the text
of the Agreement.
Participants were also asked about their intention and readiness
to apply the future IFD Agreement on a most-favoured nation
(MFN) basis, thus conferring rights also to non-participants and potentially facilitating
the consensus required for incorporating an IFD Agreement outcome into Annex 4 (Plurilateral Trade Agreements) of the Agreement Establishing
the WTO. Finally, delegations shared their views on the application of a future
Agreement on a provisional/interim basis and on the possibility of such provisional
application being agreed in the margins of a Ministerial Conference.
The two days of meetings also served to continue negotiations
on the different sections of the “Easter Text” — the
document serving as a basis for the negotiations. Participants reviewed Section
III (Streamlining and Speeding Up Administrative Procedures)
and discussed Section V (Special and Differential Treatment — S&DT — for Developing
and Least-Developed Country Members) focusing on a draft text prepared by the coordinator
on provision 25 (General Principles for S&DT). Ambassador Francke requested the proponents of S&DT provisions to hold
consultations, with the aim of finding a common text particularly on technical assistance
and capacity building.
Participants also reviewed provisions 21 (Focal Points) and
22 (Domestic Regulatory Coherence) in Section IV and discussed provision 24 (Cross-border
co-operation on investment facilitation) and a recent communication by Cambodia
on this issue. In addition, participants discussed proposed provisions on “Home
State Obligations” and “Transfers and Payments”.
A text proposal by Chile on “Non-Discrimination” was circulated
to all WTO members. The proposal had been submitted as an alternative formulation
for provision 4 (Most-Favoured-Nation Treatment). A more
in-depth discussion on this text proposal will take place at the next intersessional
meeting. Further negotiating meetings are scheduled (INF/IFD/W/29/Rev.2) for 2-3 November and 24 November,
with intersessional meetings on 20-21 October and 16-17 November 2021.
Ambassador Francke thanked all delegations
for their high-level engagement and active participation. He encouraged small/discussion
groups, as well as delegations, to continue working among themselves between meetings
in order to advance the negotiations and facilitate convergence.
Member-driven, transparent, inclusive and open to all WTO
members, this joint initiative currently has the participation of over 100 members,
up from the 70 that supported the Joint Ministerial Statement on Investment
Facilitation for Development launched at the 11th Ministerial Conference held in
December 2017 in Buenos Aires.
In a second Joint Statement on Investment Facilitation for Development issued
on 22 November 2019, 98 members expressed support for the 2017 joint ministerial
statement. They committed to intensifying work to further develop the framework
for facilitating foreign direct investment and to work towards a concrete outcome
on investment facilitation for development at the 12th WTO Ministerial Conference
(MC12). Participating members also agreed to continue their outreach efforts towards
non-participating WTO members, especially developing and least-developed members,
to ensure that the future framework helps address their investment facilitation
priorities and needs.