IFD Agreement participants discuss post-MC14 workplan and possible next steps

At a meeting on 6 July, the Co-Coordinators of the Investment Facilitation for Development (IFD) Agreement - Ambassador Marta Bonet of Chile and Ambassador Sung-yo Choi of the Republic of Korea - proposed a draft workplan aimed at guiding the next steps following the 14th WTO Ministerial Conference (MC14). Members participating in the IFD Agreement reaffirmed their objective of incorporating the Agreement into the WTO rulebook, discussed possible ways to advance its implementation, and reviewed progress on needs assessments for developing and least-developed economies.

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• Investment facilitation for development
• Trade and investment

The Co-Coordinators recalled the milestone marked by the Joint Ministerial Declaration on the IFD Agreement, adopted at MC14 in Yaoundý in March, which demonstrated the commitment of the members participating in the IFD Agreement to advancing the Agreement and its implementation. Although WTO members were unable to reach consensus at MC14 on incorporating the IFD Agreement into Annex 4 of the WTO framework, the Agreement nevertheless garnered near-universal support among WTO members.ý

The Co-Coordinators reported on their recent consultations, held with a broad cross-section of members participating in the IFD Agreement, to identify a possible path forward. According to their report, initial consultations revealed strong support among members participating in the Agreement for continuing to push for its incorporation into the WTO framework. Many delegations expressed interest in exploring possible pathways to enable the timely implementation of the Agreement.ý

Drawing on their consultations, and guided by the MC14 Joint Ministerial Declaration, the Co-Coordinators proposed a post-MC14 workplan for members' consideration. They emphasized that the workplan is intended to provide a structured and coordinated framework for balanced work across several complementary workstreams, with a view to translating the MC14 Joint Ministerial Declaration into concrete follow-up action. They also underscored that development should remain at the heart of the IFD Agreement's future work.ý

Members shared preliminary views on the proposed draft workplan and possible options for implementing the IFD Agreement, with a number of members noting that further consultations with their government authorities would be needed. They expressed support for a more structured approach to advancing the next phase of the IFD Agreement. While reaffirming that incorporating the IFD Agreement into the WTO framework remains the ultimate objective of IFD participating members, many members signalled their readiness to explore pathways to move forward.ý

The WTO Secretariat and several IFD participants provided an update on the IFD needs assessments - aimed at helping developing and least-developed country (LDC) members to get ready to implement the Agreement - and highlighted progress made in recent months. The needs assessment process has played a critical role in helping developing and LDC members to identify implementation gaps and to determine their technical assistance and capacity-building needs.ý

China, the European Union and the United Kingdom are the main donors supporting these efforts, with multiple partner organizations also contributing actively to the process. To date, 29 needs assessments have been launched, including 14 in Latin America and the Caribbean, eight in Africa, and seven in Asia. An updated list of all needs assessment projects is available on the IFD Initiative dedicated webpage.ý

Members shared their recent experiences of engagement with the needs assessment process. Developing members also called for enhanced support from donors and partner organizations so that the benefits of the needs assessment process could be extended to a broader range of developing members.ý

In closing, the Co-Coordinators thanked members for the constructive and forward-looking discussion and encouraged them to continue reflecting on the proposed workplan. The next two meetings are tentatively scheduled for September and November, respectively.ý

Backgroundý

Finalized at MC13 in 2024, the Investment Facilitation for Development 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.ý

The Marrakesh Agreement Establishing the World Trade Organization provides that, upon the request of the members who are parties to a plurilateral agreement, the Ministerial Conference may decide exclusively by consensus to add the Agreement to Annex 4, making it part of the WTO framework. In the intervals between meetings of the Ministerial Conference, its functions may be conducted by the General Council.ý

While the IFD Agreement is a plurilateral agreement (binding only on those members that accept it), it is open for all WTO members to join. Participant members have stressed that incorporation of the IFD Agreement into the WTO is critical if the Agreement is to deliver its benefits, notably for developing and LDC members, who are in the greatest need of more sustainable and impactful investment flows.ý

The IFD Agreement would also serve as a key catalyst for international support for national and regional investment facilitation efforts.

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