World Trade Organisation Joint Statement Initiative on investment facilitation for development
Canada and several other Members of the World Trade Organization (WTO) have formally announced the finalization of the Investment Facilitation for Development Agreement (IFD Agreement) in a joint ministerial declaration on the margins of the 13th WTO Ministerial Conference in February 2024.
The IFD Agreement seeks to increase the participation of developing countries in global investment flows. It aims to improve regulatory transparency and predictability. The IFD Agreement requires Parties to follow certain common standards and practices in order to simplify and speed up administrative procedures.
The IFD Agreement aims to reinforce international cooperation and information sharing on investment. It aims to address developing countries’ needs, notably through the provision of technical assistance and capacity building for developing and least developed country Parties. It requires Parties to encourage enterprises and investors to adopt responsible business practices, and to implement anti-corruption measures.
Moreover, to help developing and least-developed country Parties to implement the IFD Agreement, a needs-assessment process is also underway.
Next steps
In accordance with the Marrakesh Agreement Establishing the World Trade Organization, participating Members are currently seeking to incorporate the IFD Agreement as a plurilateral agreement under Annex 4 of the WTO Agreement. Once incorporated under Annex 4, the IFD Agreement will enter into force once 75 Members of the WTO have accepted it in accordance with their domestic processes.
As a plurilateral agreement, the IFD Agreement is binding only on WTO Members that have accepted its obligations. As plurilateral agreements are open to the whole WTO membership, WTO Members who have not accepted the IFD Agreement have the possibility of joining it at a later date.
Context
Foreign investment flows have been growing globally over the last decades, but developing and least-developed country economies still attract a relatively small proportion. Investment is known to have a positive impact on smaller economies, such as poverty reduction, promotion of sustainable development, job creation, and economic growth.
The IFD Agreement fits into Canada’s efforts to promote the achievement of the United Nations 2030 Agenda for Sustainable Development and to achieve Sustainable Development Goals. Discussions regarding the IFD Agreement started at the 11th WTO Ministerial Conference in 2017, with a Joint Ministerial Statement endorsed by Canada.
Formal negotiations started in September 2020 and were conducted in an open, transparent, and inclusive process, wherein any interested Members could participate. WTO Members can still join the Initiative after conclusion of the negotiations.
Related link
Report a problem on this page
- Date modified:
