Committee on Investment Promotion

Investment promotion “aims to encourage foreign investment through additional means beyond investment protection provisions in IIAs” (UNCTAD, 2015, p. 91) as well as promoting a nation or region as a destination for investment (Zhan, 2017, p. 5). This is to be differentiated from investment facilitation. Investment promotion intends to make an investment destination more attractive. However, not to ease the investment process. This is the role of investment facilitation whether this includes market access or merely the treatment of foreign investors is irrelevant.

 

Of national investment policies, approximately 40% account for investment promotion policies (Zhan, 2017, p. 3). However, just because such a high percentage of policy interns to incentivize investment, it does not ensure that these incentives are effective. For investment promotion to be effective and efficient, a country must highlight profitable opportunities for investment, create a more positive image of the country and its investment landscape as well as aid in finding local partnerships (OECD, 2011, p. 3). A promotion campaign has also proved to be more effective if it is specific to regions or industries, rather than a broad international campaign promoting the entire country (OECD, 2015, p. 40).

 

Within this committee, it is to be discussed what investment promotion measures are possible and feasible. In particular, it must be ensured that these measures do not collide with investment facilitation and investment protection. Furthermore, it must be ensured that these investment promotion measures to not encroach on the main principles of the WTO (most favored nation and national treatment). Additionally, once investment promotion measures have been established, countries are to discuss how investment promotion can be developed, implemented, coordinated, and monitored. In this regard, it is also to discuss how the WTO could facilitate countries in the development, implementation, coordination, and monitoring of investment promotion activities. Finally, the Committee shall bring all of these points of discussion together in either as part of a new regulatory agreement or within an existing agreement.

 

 

Author of the Committees 2018:
Marisa Menzel (marisa.menzel@model-wto.org)
Model WTO Head of Simulation Design