Send signal to investors
WTO's 164 members, 125 have agreed on the text of the Investment Facilitation for Development Agreement (IFDA). They are convinced it will help them to attract more FDI for growth, and want to annex it to WTO's main rules.
89 of these 125 members are developing countries, 27 LDCs. IFDA focuses on increasing transparency and reducing bureaucracy to make the investment process easier, but contains no prescriptions on investment policy, market access, investment protection and investor-state dispute settlement. Among other things, IFDA addresses:
- Routine information host governments should make available to foreign investors.
- Efficient and transparent handling of investment proposals and resulting projects, and the establishment of a focal point for investors.
- Suggestions that host countries support investors by creating supplier databases and development programmes.
- Permitting signatory developing countries to implement the agreement as per their ability, drawing on it for technical assistance and capacity-building by international organisations.
While countries can better their investment-facilitation frameworks unilaterally, these 125 countries see value in anchoring their efforts in shared commitments.
Moreover, even if this agreement were to be annexed to WTO's main rules, it would leave FDI policy and regulation to individual members. WTO members not wishing to sign IFDA are not bound by its rules, but can enjoy its benefits.
India, however, does not support inclusion of this agreement in the WTO rulebook.
