International Trade Centre, EU to support developing countries in attracting foreign direct investment, under WTO agreement

(Geneva) - Policymakers of developing countries will receive targeted support to conduct investment facilitation self-assessments aimed at improving their investment climate and attracting foreign direct investment (FDI), through a new project implemented by the International Trade Centre, funded by the European Union.

ITC Executive Director Pamela Coke-Hamilton and H.E. João Aguiar Machado, Ambassador of the European Union to the World Trade Organization (WTO), today signed an agreement marking the start of the project at ITC headquarters.

'The European Union is a firm supporter of the Investment Facilitation for Development (IFD) Agreement at the WTO, particularly its strong development dimension', said Ambassador João Aguiar Machado. 'The IFD Agreement sets an international blueprint and framework for attracting additional investment to developing and least-developed countries, and these self-assessments play a crucial role in preparing for its implementation process'.

Through the project, participating countries will receive technical assistance to map existing investment facilitation measures, identify challenges and policy reform options to enhance transparency and streamline administrative procedures, in line with the IFD Agreement.

The initiative comes at a time of declining FDI flows worldwide, especially sharp reductions in greenfield investment in developing countries and in investments that support sustainable development. While many developing countries offer strong growth potential, investors often face challenges related to limited regulatory transparency, complex administrative procedures and inadequate coordination among public agencies.

By supporting governments to streamline procedures and enhance inter-agency cooperation, the project aims to create a more efficient and investor-friendly environment. This, in turn, will contributing to attracting quality investments that generate local employment and boosts productivity.

The IFD Agreement was concluded at the 13th WTO Ministerial Conference in February 2024. To date, 128 WTO members are participating in the Agreement, with the goal of increasing transparency and streamlining procedures to facilitate FDI flows to developing and least developed countries in support of sustainable development.

Note to the editor

About the International Trade Centre - ITC is the joint agency of the World Trade Organization and the United Nations. ITC assists small and medium-sized enterprises in developing and transition economies to become more competitive in global markets, thereby contributing to sustainable economic development within the frameworks of the Aid-for-Trade agenda and the United Nations' Sustainable Development Goals.

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