Members participating in IFD showcase progress, urge incorporation of Agreement into WTO

At a high-level event on 25 March, on the eve of the 14th Ministerial Conference (MC14) in Yaound�, ministers of 128 WTO members participating in the Investment Facilitation for Development (IFD) Agreement showcased initiatives with global partners to support implementation of the Agreement and to mobilize investment particularly towards developing economies. They reiterated their call for MC14 to incorporate the Agreement into the WTO legal framework to fully unlock its development potential. The event was organized by the Permanent Mission of the Republic of Korea.

Members participating in IFD showcase progress, urge incorporation of Agreement into WTO

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• Investment facilitation for development
• 14th WTO Ministerial Conference

Concluded at MC13 in 2024, the IFD Agreement establishes the first global set of rules aimed at facilitating foreign direct investment flows, particularly towards developing economies, by enhancing the transparency of investment frameworks, as well as the predictability and efficiency of investment procedures.

This ministerial event brought together WTO members, including beneficiary and donor members, as well as partner international organizations, and development and investment banks to explore how the IFD Agreement can be effectively leveraged to mobilize sustainable investment. The event also highlighted the role of needs assessments for implementation of the Agreement and for unlocking its development potential, and the importance of scaling up support to help developing and least developed economies translate policy reforms into tangible investment outcomes.

In his opening remarks, Han-Koo Yeo, Minister for Trade of the Republic of Korea, stressed the importance of expediting the incorporation of the IFD Agreement into the WTO framework so that developing economies can quickly experience tangible benefits from the Agreement. He said: "IFDA has already taken an important step with the successful conclusion of negotiations. Now, at MC14, we must work toward incorporating it into the WTO legal framework and ensure its early entry into force and effective implementation . What matters now is not more discussion, but implementation. Not more promises, but real change. The time to act is now."�

In her keynote speech, Director-General Ngozi Okonjo-Iweala welcomed the broad support for the IFD Agreement from over three-quarters of the WTO's membership, including 91 developing economies, of which 27 are least-developed countries. She noted that this support "sends a powerful signal that even at a time when the global economy faces fragmentation, uncertainty, and widening development gaps, large groups of countries across different regions, sizes, and income levels can come together to articulate new global rules that can deliver concrete results for development."�

She noted that developing and least-developed economies face a significant investment gap, as investment inflows to these economies continue to decline. The IFD Agreement is critical in addressing practical obstacles on the ground and "allowing investment to flow to where it is most needed," she added, highlighting its role in enhancing transparency, streamlining administrative procedures, and building institutional capacity.�

The Director-General added: "The potential benefits from the Agreement are substantial. Recent WTO research estimates that implementing the Agreement's mandatory provisions could increase global foreign direct investment by 9% and raise global GDP by almost 1%� over ten years."�

DG Okonjo-Iweala stressed that the IFD Agreement's disciplines and benchmarks need to be matched with the expertise of financial institutions and international organizations to scale up the impact on investment facilitation. She cited the new Memorandum of Understanding between the WTO Secretariat and the European Investment Bank (EIB), signed in early March, as a historic step to mobilize EIB funding and blended finance instruments in support of needs assessments and implementation for WTO members and to attract private investment.�

In the initial phase of the EIB-WTO Trade and Investment Facilitation Initiative, the EIB will provide financing of up to ?300 million for mature projects in targeted countries ", with a potential to mobilize close to ?1 billion in investments. "Our hope is that the initiative's initial phase will be successful and can be extended to more members over time," she said.�

In her speech via a video link, Nadia Calvi�o, President of the EIB, underscored the value of the new WTO-EIB partnership. She said: "The WTO brings unique regulatory expertise networks and convening power, and this makes our partnership truly valuable. For its part, the EIB brings its financial firepower and technical expertise. Together, we are creating a virtuous circle in supporting key reforms. Partner countries can attract more and better-quality investment, and we will increase the impact of EU financing by scaling up European foreign direct investment into the continent. "�

Luc Magloire Mbarga Atangana, Cameroon's Minister of Trade and Chair of MC14, stated "as we look ahead to the 14th WTO Ministerial Conference, we have a collective opportunity - and indeed a responsibility - to incorporate the IFD Agreement into the WTO rulebook. Doing so will send a strong and credible signal to the global community that we are committed to making the multilateral trading system more responsive to development needs and capable of achieving concrete results that will benefit businesses and people around the world".

Wang Wentao, China's Minister of Commerce, said: "China will provide an additional USD 1.59 million to the International Trade Centre (ITC) to support technical assistance projects on investment facilitation, with the aim of helping 10 developing members carry out needs assessments and subsequent implementation. Together, we aim to advance global openness and cooperation and ensure that the benefits of development reach more countries and people."�

H.E. Sir Chris Bryant, the United Kingdom's Minister of State for Trade Policy and Economic Security, said:�"Needs assessments are already proving to be a powerful tool for members to unlock practical outcomes for people and businesses. The United Kingdom's contribution of �750,000 reflects the UK's commitment to allowing the benefits of the IFDA to be received by all."�

Other participants in the panel discussion included Nimul Cham, Minister of Commerce of Cambodia; Paula Est�vez, Vice-Minister for International Economic Relations at the Ministry of Foreign Affairs of Chile; Mod K. Ceesay, Minister of Trade, Industry, Regional Integration and Employment of The Gambia; and Jo�o Aguiar Machado, Ambassador of the European Union to the WTO.�

Participants hailed the progress made by IFD members and partner organizations. They emphasized the important role of IFD needs assessments as a catalyst for unlocking the Agreement's full development potential. All WTO members, even those not participating in the IFD, can request a needs assessment, they underlined. They joined the call for the incorporation of the IFD Agreement into the WTO framework at MC14.�

Representatives of international organizations and development banks also expressed their willingness to step up cooperation with the IFD initiative to support implementation of the Agreement and translate policy reforms into tangible investment outcomes. They include Pedro Manuel Moreno, Deputy Secretary-General and Officer-in-Charge of UN Trade and Development (UNCTAD); Pamela Coke-Hamilton, Executive Director of the International Trade Centre (ITC); Ndiam� Diop, Vice President for Eastern and Southern Africa at the World Bank Group; and Gyumin Han, Chief Manager at the Korea Trade-Investment Promotion Agency.�

WTO members will meet on 28 March to determine if there is consensus for the incorporation of the IFD Agreement as a plurilateral agreement into Annex 4 of the WTO Agreement. Since the text of the IFD Agreement was finalized, members which are parties to the Agreement have been preparing for implementation through needs assessments, with the support of donor members and partner organizations. Currently, 27 IFD needs assessments are under way to help developing and least-developed members identify priority areas for improving their investment framework and preparing for effective implementation of the Agreement. The IFD initiative is coordinated by Ambassador Sung-yo Choi of the Republic of Korea.

The event programme is available here.

More information on the IFD Agreement is available here.

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