Dear Members of the World Investment Network
(WIN),
Please find enclosed the seventh
joint UNCTAD-OECD report on G-20 countries' investment policy measures.
The report reviews policy measures undertaken in the past seven months
and alerts to the impact that investment measures can cause to the business
climate and to economic recovery. (For further information see UNCTAD's
Global
Investment Trends Monitors No. 8 and 9).
The joint report finds that global foreign
direct investment (FDI) inflows rose by 17% in 2011, despite the turmoil
in the global economy. FDI flows will continue to rise in 2012, but only
moderately, the report predicts. The fragility of the world economy, uncertainties
related to sovereign debt, as well as a possible slowdown of growth in
major emerging market economies, still pose risks to the recovery of FDI
flows.
During the early October 2011 to early
May 2012 reporting period, thirteen G-20 members implemented policy measures
related to investment and capital flows:
- Nine G-20 members took investment-specific
policy measures (Argentina, Brazil, Canada, China, India, Indonesia, The
Russian Federation, Saudi Arabia and South Africa)
- Two G-20 members took measures related
to their national security (Italy and the Russian Federation)
- Five G-20 members concluded in total
six bilateral investment treaties and one other international agreement
with investment provisions (India, Japan, Mexico, The Russian Federation
and Turkey)
As in the past, recent investment measures
have, for the most part, assisted the opening up of markets and enhanced
transparency. However, there were also some important investment restrictive
measures. Such measures, if taken in a manner consistent with domestic
and international law, can be a legitimate means to further certain policy
objectives. Conversely, they can also heighten perceptions of risk, particularly
at a time when investors are wary due to broader economic and political
turbulence.
The report was prepared in response
to G-20 leaders' reaffirmed commitment to resist protectionism, made at
their summit meeting in Cannes on 3-4 November 2011. The leaders called
on UNCTAD, the WTO and the OECD to continue monitoring the situation and
to report on it publicly on a semi-annual basis.
With best regards,
James X. Zhan
Director
Investment & Enterprise
Division
United Nations Conference
on Trade & Development
Palais des Nations, Geneva
Tel: +41 22 9175797
www.unctad.org/diae
wir
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