EZRA BINTANG TUMPAL CANADA-INDONESIA TRADE AND PRIVATE SECTOR ASSISTANCE PROJECT (TPSA) ON THE 11 TH WORLD TRADE ORGANIZATION (WTO) MINISTERIAL CONFERENCE 10-13 DECEMBER 2017, BUENOS AIRES
Introduction The Opportunities and Background, Investment Facilitation in Challenges for Indonesia 1 4 general, Key Elements of Investment relating to the Investment Facilitation Facilitation Historical Developments of the Conclusion and Investment Facilitation 5 2 Recommendation Historical Background on Investment Facilitation Discussion, The Interest of different groupings of WTO Members on Investment Facilitation Latest Developments and Status of the Investment Facilitation discussions during The Buenos Aires Ministerial 3 Conference
WHAT IS INVESTMENT FACILITATION • The concept of Investment Facilitation is broad and covers varieties of approach. • General Definition of Investment Facilitation: “ a broad regulatory action, institutional roles and administrative procedures in order to ease the procedures for investment” . • The concept of Investment Facilitation was repeatedly discussed in various fora and contexts with different angles, such as in UNCTAD, OECD, and G20. • This fluidity in the concept could provide space for discussing different approaches, but fluidity could lead to lack of clarity or confusion, especially when participants are not on the same level.
KEY ELEMENTS OF INVESTMENT FACILITATION • Principle of transparency • Principle of predictability and consistency • Simplified administrative procedures to ease investment, but in a wider idea (Not an exhaustive list, but the key element in investment facilitation discussion is to maximize the benefits of investment to society through a sound policy framework and also promotes responsible business conduct).
HISTORICAL BACKGROUND ON INVESTMENT FACILITATION DISCUSSIONS IN WTO Source: https://www.ictsd.org/bridges-news/bridges/news/renewed-debate- emerges-over-global-trade-and-investment-frameworks
WTO MEMBERS GROUPINGS AND POSITIONING Five proposals have been submitted to the General Council to initiate discussion on a multilateral instrument on investment facilitation as expected as one of possible deliverables at Ministerial Conference Argentina in December 2017. 1. Russia : Investment Policy Discussion Group 2. MIKTA Investment Workshop Reflection proposed by Mexico, Indonesia, Korea, Turkey and Australia 3. Proposal for a WTO Informal Dialogue on Investment Facilitation for Development proposed by Friends of Investment Facilitation for Development (FIFD) 4. China : Possible Elements of Investment Facilitation 5. Brazil and Argentina : Possible Elements of a WTO Instrument on Investment Facilitation
WTO MEMBERS GROUPINGS AND POSITIONING (2) Opposition for Investment Facilitation Discussion: India “ Investment Facilitation was not directly related to multilateral trade relation and the WTO is not the appropriate forum to have that discussion South Africa and Uganda on behalf of the least developed countries, Ecuador, Bolivia, Cuba, and Venezuela “ New issue like investment facilitation will undermine the prospects for the Buenos Aires meeting in December 2017 ”
HOW ABOUT INDONESIA? • Investment facilitation should not address market access, investment protection, and Investor-State Dispute Settlement • Importance to recognize the strong rights of each country to regulate and to introduce regulation in relation to investment. • If there is an effort to build a multilateral frame work to facilitate investment, the framework itself should be design to be flexible, adaptable, and responsive to the evolving investment facilitation priorities of WTO Members.
INVESTMENT FACILITATION IN BUENOS AIRES • Side event in MC 11, Business Forum conducted a session “Progress in Trade Facilitation and new opportunities in Investment Facilitation ” . • Press-conference on Investment Facilitation for giving an overview about the discussion Investment Facilitation during the year 2017 held by FIFD and Nigeria • Nigeria as facilitator initiated a meeting to seek response from WTO member and expected additional support for discussion for investment facilitation in structured manner. Joint Ministerial Statement on Investment Facilitation for Development (supported by 70 WTO members) (a call for beginning structured discussions aiming at developing a multilateral framework on investment facilitation)
THE OPPORTUNITIES AND CHALLENGES FOR INDONESIA RELATING TO THE INVESTMENT FACILITATION • Indonesia have opportunity to become the largest market in international trade • Need understanding and commitment between related ministries for creating one regulation which accommodate all sectors to support investment • Issue on “prioritize domestic used” become the worst nightmare for foreign investor
CONCLUSION AND RECOMMENDATION • Investment Facilitation still debatable among Members • Investment Facilitation? Is it effective for improving investment in the host country? • the right to regulate in order to meet the policy objective INDONESIA (YES/NO????)
Gracias
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