Investment facilitation for development
Originally launched in spring 2017 by a group of developing and least-developed WTO members, the Investment Facilitation for Development (IFD) Initiative aims to develop a global agreement on IFD to improve the investment and business climate and make it easier for investors in all sectors of the economy to invest, conduct their day-to-day business and expand their operations.
After over six years of intense work — comprising preparatory work under ‘structured discussions’ and negotiations, all conducted in a transparent and inclusive manner, the WTO members participating in the IFD Initiative finalized the IFD Agreement in November 2023 (INF/IFD/W/52). This most-favoured-nation-based, plurilateral agreement is open for all WTO members to join. Unlike multilateral agreements, plurilateral agreements under the WTO are binding only on those members that have accepted them.
In February 2024, following a thorough ‘language consistency review’, the IFD participants finalized the IFD Agreement in all three official WTO languages (INF/IFD/W/55).
Currently, the IFD Initiative boasts participation from over 120 WTO members spanning all regions, representing three-quarters of the WTO membership. This includes over 85 developing economies, among which 25 are least-developed economies.
In the margins of the upcoming 13th WTO Ministerial Conference (MC13), the WTO Members participating in the IFD Initiative will convene a Ministerial event on Investment Facilitation to officially mark the finalization of the IFD Agreement and publicly release it. Their aim is to request its incorporation into the WTO as a plurilateral agreement, open for all WTO Members to join (under Annex 4 of the Marrakesh Agreement establishing the World Trade Organization).
- Request for Incorporation of the Agreement on IFD into Annex 4 of the WTO Agreement (WT/GC/W/927)
- Joint Ministerial Declaration on the IFDA (WT/MIN(24)/17/Rev.1)
- Statement by the co-Coordinators (INF/IFD/W/51)
- December 2022 Statement by the co-Coordinators on IFD (INF/IFD/W/46)
- Joint Statement on Investment Facilitation for Development: WT/L/1130
- Joint Ministerial Statement on Investment Facilitation for Development: WT/L/1072/Rev.1
- Joint Ministerial Statement on Investment Facilitation for Development
News
Participation
Over 125 WTO members participate in the Joint Initiative on Investment Facilitation for Development, namely:
Participation in this Joint Initiative and related IFD Agreement is open to all WTO members. The Initiative is co-coordinated by H.E. Mrs. Sofía Boza, Ambassador, Permanent Representative of Chile to the WTO, and H.E. Mr. Jung Sung PARK, Ambassador, Deputy Permanent Representative of the Republic of Korea to the WTO.
Investment facilitation for development negotiations
Investment facilitation for development discussions at the WTO are taking place against the backdrop of an increasing and reinforcing relationship between trade and investment, which has the potential to foster economic growth and diversification, job creation and sustainable development. Over the last few decades, many countries have adopted policies aimed at facilitating investment, with the aim of attracting foreign direct investment.
In December 2017, 70 WTO members from all continents and at all levels of development issued a Joint Statement on Investment Facilitation for Development, calling for “structured discussions” aimed at developing a multilateral framework on investment facilitation for development. In November 2019, 98 WTO members committed in a second Joint Statement on Investment Facilitation for Development to intensify work on developing a framework (agreement) for facilitating foreign direct investment relating to both goods and services and on working towards a concrete outcome at the 12th Ministerial Conference (MC12).
Negotiations towards an Agreement on investment facilitation for development were formally launched in September 2020. In the ongoing negotiations on investment facilitation for development participating WTO members are discussing notably the following topics:
- improving the transparency and predictability of investment measures
- simplifying and speeding up investment-related administrative procedures
- strengthening the dialogue between governments and investors, and promoting the uptake by companies of responsible business conduct practices, as well as preventing and fighting corruption
- ensuring special and differential treatment, technical assistance and capacity building for developing and least-developed countries.
22 January 2024
Public Webinar on the Benefits of the Investment Facilitation for Development Agreement
- Webcasting
- Presentations
ITC-German Development Institute regional high-level events
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