WTO agrees to facilitate investment in developing and least developed countries

The Investment Facilitation for Development (IFD) Agreement has been signed by 75% of the World Trade Organization (WTO) members ahead of the 13th WTO Ministerial Conference (MC13) taking place in Abu Dhabi, the capital of the United Arab Emirates (UAE).

The text of the document was published on the WTO website a few hours before the opening of MC13 in the three official languages of the WTO: English, French and Spanish.

WTO nhất trí tạo thuận lợi cho đầu tư vào các nước đang và kém phát triển

3/4 members mark the completion of the IFD Agreement, request to join the WTO. Photo WTO

The agreement aims to facilitate the flow of foreign direct investment (FDI), especially to developing and least developed countries, to promote sustainable development. To achieve this, participating countries have agreed to improve transparency of measures, simplify administrative procedures, adopt other investment support measures and promote international cooperation.

The IFD signatories want ministers attending the Abu Dhabi Conference to incorporate the Agreement into the formal WTO agreements. This requires consensus among all members.

WTO Director-General Ngozi Okonjo-Iweala stressed that the IFD Agreement will contribute to making the global economy more resilient and inclusive.

As co-facilitators of the successful negotiations, Chilean Vice Minister of Trade Claudia Sanhueza and South Korean Trade Minister Inkyo Cheong jointly stressed that the IFD Agreement shows that the WTO can deliver for global trade and development, while addressing current economic challenges by facilitating investment flows, a key driver of economic growth and sustainable development.

By strengthening the capacity to attract, retain and amplify foreign direct investment, the IFD Agreement becomes an indispensable catalyst for sustainable development, said Ms. Sanhueza. “Once implemented, the IFD Agreement is expected to promote significant economic growth and welfare in developing members and extend its benefits even to non-participants,” said Chilean Vice Minister of Trade Claudia Sanhueza.

Meanwhile, MC13 Chairman Dr. Thani bin Ahmed Al Zeyoudi - UAE Minister of Foreign Trade said that the completion of the IFD Agreement is the result of more than 6 years of work, dedication and vision of more than 120 members. “This agreement is a testament to the power of cooperation and compromise as well as the shared vision of open and rules-based trade,” Dr. Thani bin Ahmed Al Zeyoudi commented.

From February 26 to February 29, 2024, the Vietnamese delegation led by Minister of Industry and Trade Nguyen Hong Dien attended the 13th Ministerial Conference (MC13) of the World Trade Organization (WTO) in Abu Dhabi and Dubai, United Arab Emirates (UAE).

The IFD participants stressed that, once acceded to the WTO, the IFD Agreement would enable developing and least-developed country (LDC) members to receive the technical assistance and capacity-building support they need to implement the Agreement.

At the same time, the participants considered that the inclusion of the IFD Agreement in the WTO was essential for the Agreement to deliver benefits, particularly to developing members and LDCs, who have the greatest need for more sustainable investment flows. The IFD Agreement in the WTO would also serve as a key catalyst for international support for national and regional investment facilitation efforts.

Some assessments of Ministers of countries on the Investment Facilitation Agreement for Development (IFD):

Senator The Hon. Tim Ayres - Assistant Minister for Trade (Australia): This new agreement will help developing countries attract and benefit from global investment. This is an important moment for the WTO, showing that the organization can continue to innovate and create new international trade and investment rules.

Sra. Sonsoles García - Minister of Production, Foreign Trade, Investment and Fisheries (Ecuador): El Acuerdo FID promotes the reversal of responsibility, promotes transparent politics, promotes the implementation of a communication portal, the voluntary application of international principles on corporate responsibility, and the debate on the hardship on the part of companies.

María Luisa Hayem - Minister of Economy (El Salvador): The Investment Facilitation Agreement for Development will bring great benefits to economies like El Salvador, promoting efforts to streamline and make transparent investment-related procedures through the digitalization of government services; in addition to promoting the use and transfer of technology, this will boost the participation of economies like El Salvador in global investment flows.

Mr. Valdis Dombrovskis - Executive Vice President and Trade Commissioner of the European Commission (European Union): This agreement comes at a crucial time when the need for investment is stronger than ever. I hope it can be implemented as soon as possible to create opportunities for developing and least developed countries to increase their capacity to attract more investment, improve their business environment and help grow their economies.

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