Karl P. Sauvant, “How Would a Future WTO Agreement on Investment Facilitation for Development Encourage Sustainable FDI Flows, and How Could It be Further Strengthened?”, in Elora Neto Godry Farias, Gino Rivas, Gustavo Favero Vaughn, and Mateo Verdías Mezzera, with Kabir Duggal, eds., ‘Pro Arbitration’ Revisited: A Tribute to Professor George Bermann from His Students Over the Years (Huntington: JURIS, 2023), pp. 15-32.
Abstract
Negotiations on an Investment Facilitation for Development Agreement have been underway in the WTO since September 2020; they are meant to be concluded by the end of 2022. The negotiations are far advanced and focus on a wide range of specific, technical investment measures that governments can put in place to facilitate the flow of foreign direct investment (FDI). This article focusses on the development dimension of the Agreement. More specifically, it discusses to what extant the Agreement addresses sustainable FDI; contains investment facilitation measures that directly increase the development impact of such investment; deals with home country measures regarding outward FDI; requires responsible business conduct; and provides for special and differential treatment for developing countries and especially the least developed among them and the related questions of technical assistance and capacity building. For each of these areas, concrete suggestions are being made on how the development dimension of the Agreement can be further strengthened.