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View this email in your browser <https://mailchi.mp/law/perspective-322?e=763bcf158c> 哥伦比亚大学国际直接投资展望中文版都可以在我们的网站查看: https://ccsi.columbia.edu/content/columbia-fdi-perspectives <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=dda425ccc6&e=763bcf158c> . *Columbia FDI Perspectives* Perspectives on topical foreign direct investment issues Editor-in-Chief: Karl P. Sauvant ([log in to unmask]) Managing Editor: Riccardo Loschi ([log in to unmask]) *The Columbia FDI Perspectives are a forum for public debate. The views expressed by the authors do not reflect the opinions of CCSI or our partners and supporters.* No. 322 January 10, 2022 *Implementing an Investment Facilitation Framework for Development: Lessons from the Trade Facilitation Agreement* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=542d1e3530&e=763bcf158c> by Mohammad Saeed* <#m_7444540998769991503__edn1> Revitalizing investment, including FDI, is key for a robust and resilient recovery of the pandemic-stricken global economy. The Investment Facilitation for Development (IFF4D <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=43634f23aa&e=763bcf158c>) initiative at the WTO aims to create a multilateral framework for an investment-friendly business ecosystem that could give fresh impetus to FDI flows that advance development and instill confidence into the global economy. Enhancing transparency, streamlining procedures, implementing user-friendly regulations, and cooperative approaches are key principles for encouraging development-oriented investment. WTO members are currently implementing the Trade Facilitation Agreement (TFA) <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=ddb600c0a5&e=763bcf158c>, which embodies the above-mentioned principles. The lessons learnt provide ample guidance for furthering the IFF4D negotiations and its effective implementation. These are key takeaways: - *Provide flexibility to determine implementation timelines according to implementation capacity**.* One of the most impactful and creative ideas in the TFA was increasing flexibility by linking obligations to the WTO members’ capacity to implement them. Developing countries were given the flexibility to pick the timing of implementation of particular commitments[1] <#m_7444540998769991503__edn2> and to link a particular commitment with the acquisition of implementation capacity through the provision of technical assistance and capacity building. This gave them the necessary comfort and confidence that it is their own sovereign decision as to how to sequence implementation according to their needs, resources, implementation capacity, and national development agendas. - *Make sure assistance is available, easily accessible and robust enough for deeper implementation**.* No reform is easy to implement, particularly when resources are limited and there are competing priorities that might offer larger political dividends. Limited financial resources manifest themselves more acutely if there is not enough technical expertise. Therefore, the provision of both technical and financial resources—in the form of grants—was instrumental in providing the necessary assurance to WTO members that implementation could be sustainable and go beyond mere legal compliance. - *Provide an institutional mechanism with the necessary mandate and resources to bring all stakeholders on board, including the private sector.* Both trade and investment facilitation, by their nature, are multidisciplinary and involve multiple stakeholders. While governments should primarily serve as enablers, the real actors are firms. To achieve better and commercially meaningful results, private businesses need to be involved at every stage of implementation, from diagnosis to design, execution and continued review and feedback for improved results. Such public-private engagement should be regular, sustained and, ideally, institutionalized. In the context of the TFA, National Trade Facilitation Committees offer a useful model worth replicating. Depending upon the local realities and in accordance with respective governance structures, this role could be played by investment promotion agencies or some other entity. - *Adopt a “whole of government” approach centered around coordination and collaboration.* Successful TFA implementation has required a coordinated and collaborative approach that defies the usual turf-war issues amongst government agencies and ministries. Similarly, the scope of investment transcends not only various agencies but also different government levels. In the context of an IFF4D, the “whole of government” approach is “must have”. - *Start gap assessments—the sooner the better.* While the TFA negotiations were in full swing in Geneva, the WTO launched a rather novel initiative by embarking upon “needs assessments” to ascertain the current national situations and requirements to implement different provisions under negotiation. Between 2008 and 2012, there were two rounds of such assessments in around 100 WTO members’ capitals in each round. This was also complemented by bringing capital-based officials from least developed countries to participate in the negotiations in Geneva. These gap and needs assessments raised awareness and built momentum for countries to prepare for the Agreement’s implementation. - *Incentivize international investors to undertake sustainable FDI*. A concrete provision in the TFA was to reward trusted compliant economic actors with preferred treatment through the Authorized Operator scheme ( TFA <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=4a70b8facd&e=763bcf158c>, Art. 7.7). Perceived by traders and government regulators alike as particularly facilitative, it rewards good conduct and induces healthy competition and a race to the top. A similar suggestion has been made to include the concept of the Recognized Sustainable Investor in the framework of an IFF4D.[2] <#m_7444540998769991503__edn3> - *Develop agreed implementation markers and measure them periodically**. *“What gets measured, gets managed” is true for different businesses; for policy reforms, it is the cornerstone for any commercially meaningful results. An agreed set of implementation markers (e.g., key performance indicators) would help the authorities to keep track of the implementation and impact of the IFF4D. The private sector can contribute by providing feedback about the effectiveness of the reforms (or lack thereof), cementing public-private-partnerships and shared ownership. The experience of the effective and inclusive implementation of the TFA, with its inherent flexibilities, can add useful guidance to the ongoing negotiations of the IFF4D. Negotiators and implementing authorities are therefore advised to carefully review and, where feasible, apply the lessons and success factors of the TFA for the benefit of this vital WTO initiative. ------------------------------ * <#m_7444540998769991503__ednref1> Mohammad Saeed ([log in to unmask]) is Chief, Trade Facilitation and Policy for Business, International Trade Centre (ITC); he participated in the TFA negotiation process as a developing country delegate and works on its implementation. The views expressed in this *Perspective* do not necessarily reflect the views of the institution with which the author is affiliated. The author wishes to thank Roberto Echandi, Bernard Hoekman and Nora Neufeld for their helpful peer reviews. [1] <#m_7444540998769991503__ednref2> See, e.g., TFA <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=f97e6247bd&e=763bcf158c>, Section II. [2] <#m_7444540998769991503__ednref3> Karl P. Sauvant and Evan Gabor, “Facilitating sustainable FDI for sustainable development in a WTO Investment Facilitation Framework: four concrete proposals,” *Journal of World Trade*, vol. 55 (2021) <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=f0bd50412c&e=763bcf158c>, pp. 261-286. *The material in this Perspective may be reprinted if accompanied by the following acknowledgment: “Mohammad Saeed, ‘Implementing an Investment Facilitation Framework for Development: Lessons from the Trade Facilitation Agreement,’ Columbia FDI Perspectives No. 322, January 10, 2022. Reprinted with permission from the Columbia Center on Sustainable Investment (* *http://ccsi.columbia.edu* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=a456148a0b&e=763bcf158c>*).” A copy should kindly be sent to the Columbia Center on Sustainable Investment at **[log in to unmask]* <[log in to unmask]>*.* For further information, including information regarding submission to the *Perspectives*, please contact: Columbia Center on Sustainable Investment, Riccardo Loschi, [log in to unmask] *Most recent Columbia FDI Perspectives* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=d119dcba07&e=763bcf158c> - No 321, Peter Muchlinski, “Promoting responsible business through the revised ILO Tripartite Declaration,” Columbia FDI Perspectives, December 27, 2021 - No. 320, Daniela Gomez Altamirano, “Protecting FDI contributing to host countries’ development: The rise of the “forgotten” Salini criterion as part of the definition of investment,” Columbia FDI Perspectives, December 13, 2021 - No. 319, Matthew Stephenson, “Launching a program for investment partnerships,” Columbia FDI Perspectives, November 29, 2021 *All previous FDI Perspectives are available at https://ccsi.columbia.edu/content/columbia-fdi-perspectives <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=d08013c085&e=763bcf158c>* . *Other relevant CCSI news and announcements* - CCSI's 2022 *Executive Training Program on Extractive Industries and Sustainable Development* will take place online from June 6-17, 2022. The program is designed to equip participants with the necessary skills to promote the responsible development of the extractive industries sector in resource-rich developing countries and to encourage a rich dialogue about best practices from around the globe. The two-week training emphasizes the interdisciplinary nature of resource-based development. By working through real case studies and with practitioners and experts in the field, participants will be able to apply analytical tools and frameworks to the unique context of the extractive industries in their country. For more information, and to apply, visit our website <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=b6b575d43b&e=763bcf158c> . - CCSI's 2022 *Executive Training Program on Sustainable Investments in Agriculture* will take place online from May 3-13, 2022. The training provides an interdisciplinary approach to addressing the challenges and opportunities of agricultural investments. The program is designed to equip participants with the necessary knowledge and skills to address some of the key challenges posed by international investments in agriculture, and to encourage a rich dialogue about practices from around the globe. Applications will be considered on a rolling basis until March 31, 2022. For more information, and to apply, visit our website <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=3e53bd414a&e=763bcf158c> . Karl P. Sauvant, Ph.D. Resident Senior Fellow Columbia Center on Sustainable Investment Columbia Law School - Earth Institute Ph: (212) 854-0689 Fax: (212) 854-7946 *Copyright © 2022 Columbia Center on Sustainable Investment (CCSI), All rights reserved.* [log in to unmask] *Our mailing address is:* Columbia Center on Sustainable Investment (CCSI) Columbia Law School - Earth Institute, Columbia University 435 West 116th Street New York, NY 10027 Add us to your address book <https://columbia.us6.list-manage.com/vcard?u=ab15cc1d53&id=a61bf1d34a> unsubscribe from this list <https://columbia.us6.list-manage.com/unsubscribe?u=ab15cc1d53&id=a61bf1d34a&e=763bcf158c&c=0f861658f5> update subscription preferences <https://columbia.us6.list-manage.com/profile?u=ab15cc1d53&id=a61bf1d34a&e=763bcf158c&c=0f861658f5> [image: Email Marketing Powered by Mailchimp] <http://www.mailchimp.com/email-referral/?utm_source=freemium_newsletter&utm_medium=email&utm_campaign=referral_marketing&aid=ab15cc1d53&afl=1> -- *Karl P. Sauvant, PhD* *Resident Senior Fellow* *Columbia Center on Sustainable Investment* Columbia Law School - The Earth Institute, Columbia University 435 West 116th St., Rm. JGH 825, New York, NY 10027 | p: (212) 854 0689 | cell: (646) 724 5600 e: [log in to unmask] | w: www.ccsi.columbia.edu | t: @CCSI_Columbia <https://twitter.com/CCSI_Columbia> "Incentivising Sustainable FDI", "Leveraging Digital FDI for Capacity and Competitiveness", "Green FDI: Encouraging carbon-neutral investment", "Facilitating Sustainable Investment to Build Back Better", "Extending International Legal Aid from Trade to Investment: An Advisory Centre on International Investment Law", "Increasing Transparency in Investment Facilitation: Focussed Support is Needed", *Investment Facilitation for Development: A Toolkit for Policymakers*, "More Attention to Policies! Improving the Distribution of FDI Benefits. The Need for Policy-oriented Research, Advice and Advocacy", "More and Better Investment Now!", "Facilitating Sustainable FDI in a WTO Investment Facilitation Framework: Four Concrete Proposals", "Multinational Enterprises and the Global Investment Regime: Toward Balancing Rights and Responsibilities”, "An Inventory of Concrete Measures to Facilitate the Flow of Sustainable FDI: What? Why? How?", are available at https://ssrn.com/author=2461782 . ____ AIB-L is brought to you by the Academy of International Business. For information: http://aib.msu.edu/community/aib-l.asp To post message: [log in to unmask] For assistance: [log in to unmask] AIB-L is a moderated list.