The purpose of the paper is to examine more closely the development-oriented elements that are at present included in the framework, and to understand to what extent and in what ways such elements are expected to lead to sustainable development outcomes. This brief will examine special and differential treatment (S&DT), including notification and implementation; the investment facilitation needs assessment; specific proposals for promoting more sustainable investments; and the potential role of home state measures.
The proponents of the Joint Statement Initiative (JSI) on Investment Facilitation for Development (IFD) have emphasised that a central objective of the IFD Agreement will be to deliver important development outcomes, notably by increasing investment flows into developing and least developed country (LDC) members. As recently as December 2021, Signatories to the JSI issued a Joint Statement reiterating their objective to conclude an agreement “that will help WTO Members attract, expand and retain foreign direct investment flows and to achieve sustainable development goals”. In light of such expectations, an increasing number of developing and LDCs have signed onto the Joint Ministerial Statement on Investment Facilitation for Development, thereby indicating their willingness to support and actively participate in the negotiations.
The purpose of the paper is to examine more closely the development-oriented elements that are at present included in the framework, and to understand to what extent and in what ways such elements are expected to lead to sustainable development outcomes. It examines special and differential treatment (S&DT), including notification and implementation; the investment facilitation needs assessment; specific proposals for promoting more sustainable investments; and the potential role of home state measures. These topics were selected for closer examination because the proposals are either reflected in the negotiating text, or in the Annex.
Finally, the authors review whether and how the policy positions of members regarding these issues have been reflected in the negotiating text. They also look into some of the main challenges encountered in the negotiations of such provisions, and to what extent these challenges have limited the level of ambition to deliver more concrete sustainable development outcomes.