World Trade Organization (WTO) members participating in the discussions on investment facilitation for development (IFD) heard back from the facilitators of discussion groups, and considered implementation, technical assistance, and capacity building in a dedicated session.

The IFD process is one of several “Joint Statement Initiatives” (JSIs) launched at the WTO’s Eleventh Ministerial Conference (MC11) in Buenos Aires, Argentina, in December 2017, by groups of WTO members, with other initiatives covering topics such as domestic regulation in services, electronic commerce, micro, small and medium-sized enterprises (MSMEs), and gender. Open to all WTO members, the IFD initiative currently counts over 100 members among its participants.

On 22 November 2019, 98 WTO members expressed support for the 2017 joint ministerial statement in a second Joint Statement on Investment Facilitation for Development. In it, participating members commit to intensify 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 WTO’s Twelfth Ministerial Conference (MC12), now scheduled from 30 November to 3 December 2021. According to the 2019 joint statement, they also agreed to continue outreach towards non-participating WTO members, especially developing countries and least developed countries (LDCs), to “ensure that the future framework helps address their investment facilitation priorities and needs.”

At the most recent round of meetings from 16-17 June 2021, the facilitator of the group on scope presented the text developed by the group, which addresses “some key aspects of the overall scope of application” of a future agreement, and said the group will continue working on related issues, including definitions. Participants also heard about ongoing work of the discussion group on “facilitation of the entry and temporary stay of businesspersons for investment purposes.” Ambassador Mathias Francke of Chile, coordinator of the negotiations, urged small group participants to continue making “substantial progress.”

Participants also discussed a revised version of Section II (Transparency of investment measures), a revised version of provision 30 on “Responsible business conduct” under Section VI (Sustainable investment), and text on a possible most-favored nation treatment provision – all prepared by the coordinator. Discussions of a revised proposal on “Transfers and payments” also continued.

The session on implementation, technical assistance, and capacity building sought to “pave the way” for the discussions on Section V of the “Easter text” on “Special and differential treatment (S&DT) for developing and least-developed country (LDC) members.” Two panels focused on “Lessons learnt from the Trade Facilitation Agreement (TFA) implementation” and on “Lessons learnt from international organizations active in the implementation of investment facilitation measures/reforms,” respectively.

In the first panel, members, experts from recipient and donor members, and representatives of the World Bank Group and the Global Alliance for Trade Facilitation shared their experiences with TFA implementation, and offered insights into TFA elements they deemed “most useful” in the IFD context.

The second panel considered good practices and challenges encountered by leading international organizations in the implementation of investment facilitation measures. Speakers identified “the areas they saw as the most impactful and requiring the most technical assistance,” and underscored the need for “proper sequencing and an integrated, all-government approach” to implementation of investment facilitation reforms. [WTO Press Release]