Members of the World Trade Organization (WTO) made important progress in negotiations on investment facilitation for development, with a view to obtaining a concrete outcome at the 12th Ministerial Conference at the end of the year, reported the international organization.
Investment facilitation is based on the recognition that in today's integrated economy, The expansion of investment flows, like trade flows, depends on the simplification, acceleration and coordination of processes. In fact, in many cases, the bottlenecks, inefficiencies and uncertainties that investment facilitation seeks to address arise from unnecessary bureaucratic procedures or outdated procedures that can become costly impediments to investment.
In this regard, at the meeting held on 11 and 12 May, the delegations discussed provisions from several sections of the so-called “Easter Text”, the only document that serves as a basis for these negotiations on the investment facilitation agreement to be open, transparent and inclusive.
In addition, there was discussion about including a provision for most favored nation treatment (MFN) principle, meaning that if a country is granted a special advantage (for example, a lower tariff rate on one of its products), the same must be done for all other WTO members. This principle is so important that it is the first article of the General Agreement on Tariffs and Trade (GATT), which governs trade in goods.
On the other hand, the issues of Transfers and payments, focal points, national regulatory coherence, national supplier databases and cross-border cooperation. The provisions on responsible business conduct to ensure that investments are an effective tool for development.
Negotiation coordinator Ambassador Mathias Francke of Chile praised the facilitators for their hard work and encouraged participants in the small groups to continue to move forward in their deliberations and work constructively.
The WTO announced that at the next meeting, members will hold a discussion on possible definitions to be included in the future investment facilitation agreement. In addition, the section of the “Easter Text” on transparency of investment measures will be reviewed and text proposals on actions to combat fraud will be discussed. corruption, among others.
It is worth mentioning that the Investment Facilitation Initiative was launched in December 2017 at the Ministerial Conference held in Buenos Aires, in order to enable greater participation of developing and least-developed countries in global investment flows. More than 100 WTO Members are participating in the negotiations with the aim of reaching a concrete result by the end of 2021.
The next round of negotiations will take place from May 31 to June 1.
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
