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View this email in your browser <https://urldefense.proofpoint.com/v2/url?u=https-3A__mailchi.mp_law_perspective-2D339-3Fe-3D763bcf158c&d=DwMFaQ&c=009klHSCxuh5AI1vNQzSO0KGjl4nbi2Q0M1QLJX9BeE&r=I9zAJIudsa5yxlT_Id_PF9eN7Z6KIuzTooqox3bxfWw&m=TX7rHJ1lZZFiozKR5DCQmwgy2vQO523AuVMSyehQbmenVZAu_StyEDGUSs7CJ1Gq&s=MRZU2WebiBqAl5r1dXoU143xRo-k0wTWD5keZQ-nUcY&e=> 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://urldefense.proofpoint.com/v2/url?u=https-3A__columbia.us6.list-2Dmanage.com_track_click-3Fu-3Dab15cc1d53-26id-3D62f6e31cd1-26e-3D763bcf158c&d=DwMFaQ&c=009klHSCxuh5AI1vNQzSO0KGjl4nbi2Q0M1QLJX9BeE&r=I9zAJIudsa5yxlT_Id_PF9eN7Z6KIuzTooqox3bxfWw&m=TX7rHJ1lZZFiozKR5DCQmwgy2vQO523AuVMSyehQbmenVZAu_StyEDGUSs7CJ1Gq&s=W9D8NRHULYXKdZvsKqe3-iuxFv65SWNZ54YgacCwEPI&e=> . *Columbia FDI Perspectives* Perspectives on topical foreign direct investment issues Editor-in-Chief: Karl P. Sauvant ([log in to unmask]) Managing Editor: Abigail Greene ([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. 339 September 5, 2022 *Defining investment in a future WTO agreement on investment facilitation for development* <https://urldefense.proofpoint.com/v2/url?u=https-3A__columbia.us6.list-2Dmanage.com_track_click-3Fu-3Dab15cc1d53-26id-3Dc7afcf0a66-26e-3D763bcf158c&d=DwMFaQ&c=009klHSCxuh5AI1vNQzSO0KGjl4nbi2Q0M1QLJX9BeE&r=I9zAJIudsa5yxlT_Id_PF9eN7Z6KIuzTooqox3bxfWw&m=TX7rHJ1lZZFiozKR5DCQmwgy2vQO523AuVMSyehQbmenVZAu_StyEDGUSs7CJ1Gq&s=kYHS1EMRkfhT0yoyOepFAafy5HuPMfBJLkIAy2Cnf0Y&e=> by Christian Pitschas* <#m_6456865809821442235__edn1> The WTO negotiations on investment facilitation for development are scheduled to be concluded by the end of this year. Negotiators seek an Investment Facilitation for Development (IFD) Agreement that would enhance developing and least developed countries’ participation in global investment flows.[1] <#m_6456865809821442235__edn2> The negotiations are based on a continuously updated text. While the current draft of this text defines certain key terms, the term “investment” has yet to be defined. If negotiators decide to define investment, a critical consideration should be the way in which the WTO rule book deals with trade-related investment matters. Three WTO agreements are particularly relevant in this respect: - the Agreement on Trade-Related Investment Measures (TRIMs Agreement), - the General Agreement on Trade in Services (GATS), and - the amended Agreement on Government Procurement (GPA). While the investment-related provisions in these agreements do not constitute legally binding precedent, given the “stand-alone” character of a future IFD Agreement, they may usefully inform the discussion on how to define investment under a future IFD Agreement. The TRIMs Agreement applies to investment measures related to trade in goods. It prohibits any such measure that is inconsistent with the GATT provisions on national treatment or the general elimination of quantitative restrictions. The Annex to the TRIMs Agreement contains an illustrative list of trade-related investment measures that are *per se* inconsistent with either GATT Art. III:4 or GATT Art. XI:1.[2] <#m_6456865809821442235__edn3> The measures mentioned in this list refer to, among others, the purchase, use, importation or exportation of products by an enterprise. Accordingly, trade-related investment measures in the sense of the TRIMs Agreement are typically linked to two elements: an enterprise, and products purchased, used, imported or exported by such enterprise. The GATS covers measures affecting trade in services and defines “trade in services” by reference to four “modes” of supply. One of them is the “commercial presence” of a WTO member’s service supplier in the territory of any other WTO member. GATS defines “commercial presence” as any type of business or professional establishment within a WTO member’s territory, including through the constitution, acquisition or maintenance of a juridical person, for the purpose of supplying a service.[3] <#m_6456865809821442235__edn4> This definition ensures that commercial presence captures foreign direct investment (FDI) in services; in fact, approximately two thirds of global FDI stocks are in services.[4] <#m_6456865809821442235__edn5> Hence, commercial presence within the meaning of the GATS is characterized by two elements: a business or professional establishment within a WTO member’s territory, and the supply of a service. The GPA, a plurilateral agreement, applies to any measure regarding procurement of goods, services or any combination thereof, for governmental purposes. To this end, the GPA also covers government procurement of goods or services offered by a supplier of a GPA Party.[5] <#m_6456865809821442235__edn6> The GPA’s non-discrimination obligation requires, *inter alia*, that a locally established supplier not be treated less favorably than another locally established supplier based on the degree of foreign affiliation or ownership. This implies that, for purposes of the GPA, a supplier locally established in a GPA party may be a supplier that is affiliated with, or owned by, a person or a group of persons of another GPA party and offers goods or services for a particular procurement. In light of the foregoing, it can be observed that the WTO rule book addresses trade-related investment matters by way of recourse to two elements: (i) a business or professional establishment by a WTO member’s person in another WTO member’s territory (ii) for purposes of providing goods or services. Two consequences flow from these elements. Firstly, by requiring a business or professional establishment, the first element excludes an asset-based definition of investment. Secondly, by requiring that an established entity be engaged in a real economic activity through the provision of goods or services, the second element excludes an investment definition that includes portfolio investment, irrespective of economic sector. Negotiators would be well advised to take account of the aforementioned two elements should they wish to define investment in a future IFD Agreement. ------------------------------ * <#m_6456865809821442235__ednref1> Christian Pitschas ( [log in to unmask]) is advisor at the German Development Corporation (GIZ). The views expressed in this article are those of the author and cannot be attributed to the GIZ. The author wishes to thank Hamid Mamdouh, Petros Mavroidis and Pierre Sauvé for their helpful peer reviews. He is solely responsible for any errors. [1] <#m_6456865809821442235__ednref2> Joint Statement on Investment Facilitation for Development <https://urldefense.proofpoint.com/v2/url?u=https-3A__columbia.us6.list-2Dmanage.com_track_click-3Fu-3Dab15cc1d53-26id-3D29cf8192b3-26e-3D763bcf158c&d=DwMFaQ&c=009klHSCxuh5AI1vNQzSO0KGjl4nbi2Q0M1QLJX9BeE&r=I9zAJIudsa5yxlT_Id_PF9eN7Z6KIuzTooqox3bxfWw&m=TX7rHJ1lZZFiozKR5DCQmwgy2vQO523AuVMSyehQbmenVZAu_StyEDGUSs7CJ1Gq&s=0r0te7Lb0-PLajZRbHCCwyIwKq7nP5j0GLipP8f1SWk&e=>, 10 December 2021, paras. 2 and 3. [2] <#m_6456865809821442235__ednref3> Panel report, Brazil-Taxation <https://urldefense.proofpoint.com/v2/url?u=https-3A__columbia.us6.list-2Dmanage.com_track_click-3Fu-3Dab15cc1d53-26id-3Dd3e47a279d-26e-3D763bcf158c&d=DwMFaQ&c=009klHSCxuh5AI1vNQzSO0KGjl4nbi2Q0M1QLJX9BeE&r=I9zAJIudsa5yxlT_Id_PF9eN7Z6KIuzTooqox3bxfWw&m=TX7rHJ1lZZFiozKR5DCQmwgy2vQO523AuVMSyehQbmenVZAu_StyEDGUSs7CJ1Gq&s=lnpQDt7y3qG91yS_rapOoREpPSBMUEhloJH6RfC6HSM&e=> (WT/DS472/R, WT/DS497/R), para. 7.805. [3] <#m_6456865809821442235__ednref4> GATS <https://urldefense.proofpoint.com/v2/url?u=https-3A__columbia.us6.list-2Dmanage.com_track_click-3Fu-3Dab15cc1d53-26id-3D7239f8b92c-26e-3D763bcf158c&d=DwMFaQ&c=009klHSCxuh5AI1vNQzSO0KGjl4nbi2Q0M1QLJX9BeE&r=I9zAJIudsa5yxlT_Id_PF9eN7Z6KIuzTooqox3bxfWw&m=TX7rHJ1lZZFiozKR5DCQmwgy2vQO523AuVMSyehQbmenVZAu_StyEDGUSs7CJ1Gq&s=1bMkgfDBUUGIegUzeKIXnAzm_UVCidsyCx1ZnV2Ga4M&e=> Art. XXVIII(d). "Commercial presence” includes the constitution, acquisition or maintenance of a juridical person, with the service supplier having to own or control that juridical person (GATS Art. XXVIII (m) (ii)). Ownership of a juridical person means beneficial ownership of more than 50% of the equity interest in it, whereas control of a juridical person means the power to appoint a majority of its directors or to legally direct its actions (GATS Art. XXVIII (n)). [4] <#m_6456865809821442235__ednref5> M. Roy, “The contribution of services trade policies to connectivity in the context of aid for trade <https://urldefense.proofpoint.com/v2/url?u=https-3A__columbia.us6.list-2Dmanage.com_track_click-3Fu-3Dab15cc1d53-26id-3Db8ae936b03-26e-3D763bcf158c&d=DwMFaQ&c=009klHSCxuh5AI1vNQzSO0KGjl4nbi2Q0M1QLJX9BeE&r=I9zAJIudsa5yxlT_Id_PF9eN7Z6KIuzTooqox3bxfWw&m=TX7rHJ1lZZFiozKR5DCQmwgy2vQO523AuVMSyehQbmenVZAu_StyEDGUSs7CJ1Gq&s=rcPiuVLJtM19OQKoCV2sr9J4vdL20xBtx_tNmgHYArA&e=>” (WTO Staff Working Paper, ERSD-2017-12), p. 5. [5] <#m_6456865809821442235__ednref6> A “supplier” means a person or group of persons that provides or could provide goods or services, GPA <https://urldefense.proofpoint.com/v2/url?u=https-3A__columbia.us6.list-2Dmanage.com_track_click-3Fu-3Dab15cc1d53-26id-3D014ab63686-26e-3D763bcf158c&d=DwMFaQ&c=009klHSCxuh5AI1vNQzSO0KGjl4nbi2Q0M1QLJX9BeE&r=I9zAJIudsa5yxlT_Id_PF9eN7Z6KIuzTooqox3bxfWw&m=TX7rHJ1lZZFiozKR5DCQmwgy2vQO523AuVMSyehQbmenVZAu_StyEDGUSs7CJ1Gq&s=0pBAsvI8FEpaH-_IaJUhF-0YEGJUI8uzc16EwWnpV44&e=> Art. I (t). *The material in this Perspective may be reprinted if accompanied by the following acknowledgment: “Christian Pitschas, ‘Defining investment in a future WTO agreement on investment facilitation for development,’ *Columbia FDI Perspectives* No. 339, September 5, 2022. Reprinted with permission from the Columbia Center on Sustainable Investment (* *http://ccsi.columbia.edu* <https://urldefense.proofpoint.com/v2/url?u=https-3A__columbia.us6.list-2Dmanage.com_track_click-3Fu-3Dab15cc1d53-26id-3De48fd095bf-26e-3D763bcf158c&d=DwMFaQ&c=009klHSCxuh5AI1vNQzSO0KGjl4nbi2Q0M1QLJX9BeE&r=I9zAJIudsa5yxlT_Id_PF9eN7Z6KIuzTooqox3bxfWw&m=TX7rHJ1lZZFiozKR5DCQmwgy2vQO523AuVMSyehQbmenVZAu_StyEDGUSs7CJ1Gq&s=WUM3K0FFzhBCY0CLPANhIg6n1N3h5hNca6OleH7zZzs&e=>*).” 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, Abigail Greene, [log in to unmask] *Most recent Columbia FDI Perspectives* <https://urldefense.proofpoint.com/v2/url?u=https-3A__columbia.us6.list-2Dmanage.com_track_click-3Fu-3Dab15cc1d53-26id-3Dfed9395149-26e-3D763bcf158c&d=DwMFaQ&c=009klHSCxuh5AI1vNQzSO0KGjl4nbi2Q0M1QLJX9BeE&r=I9zAJIudsa5yxlT_Id_PF9eN7Z6KIuzTooqox3bxfWw&m=TX7rHJ1lZZFiozKR5DCQmwgy2vQO523AuVMSyehQbmenVZAu_StyEDGUSs7CJ1Gq&s=7-tU9qcufp9ExK2fVK2k0WvXYZdw4nvP8TstvKiVEks&e=> - No. 338, Louis T. Wells, “Got ‘critical minerals’? Hooray! But be careful!,” *Columbia FDI Perspectives*, August 22, 2022 - No 337, Charles-Emmanuel Côté, “The new Canadian Model investment treaty: A quiet evolution,” *Columbia FDI Perspectives*, August 8, 2022 - No. 336, Phil Baumann, “How host country governments can ensure competitive neutrality in cross-border M&As,” *Columbia FDI Perspectives*, July 25, 2022 *All previous FDI Perspectives are available at https://ccsi.columbia.edu/content/columbia-fdi-perspectives <https://urldefense.proofpoint.com/v2/url?u=https-3A__columbia.us6.list-2Dmanage.com_track_click-3Fu-3Dab15cc1d53-26id-3D54b74c752b-26e-3D763bcf158c&d=DwMFaQ&c=009klHSCxuh5AI1vNQzSO0KGjl4nbi2Q0M1QLJX9BeE&r=I9zAJIudsa5yxlT_Id_PF9eN7Z6KIuzTooqox3bxfWw&m=TX7rHJ1lZZFiozKR5DCQmwgy2vQO523AuVMSyehQbmenVZAu_StyEDGUSs7CJ1Gq&s=I-M8z7MiNl7q8BYA7w6h3OsRSJxrhDvaBzU-LOJCDKk&e=>* . *Other relevant CCSI news and announcements* - The next free *Massive Open Online Course (MOOC) on “Natural Resources for Sustainable Development: The Fundamentals of Oil, Gas and Mining Governance”* will be available starting September 1, 2022 (at midnight UTC). This joint course was developed by CCSI, the Natural Resource Governance Institute, the World Bank, and the United Nations Sustainable Development Solutions Network (SDSN) and has enrolled thousands of participants from all over the world. Enroll now <https://urldefense.proofpoint.com/v2/url?u=https-3A__columbia.us6.list-2Dmanage.com_track_click-3Fu-3Dab15cc1d53-26id-3Db2c29fa4b5-26e-3D763bcf158c&d=DwMFaQ&c=009klHSCxuh5AI1vNQzSO0KGjl4nbi2Q0M1QLJX9BeE&r=I9zAJIudsa5yxlT_Id_PF9eN7Z6KIuzTooqox3bxfWw&m=TX7rHJ1lZZFiozKR5DCQmwgy2vQO523AuVMSyehQbmenVZAu_StyEDGUSs7CJ1Gq&s=SfzNA6DqH4U2k_JWwKK5E6LUCWxRVrEM1Z2QEY5LO74&e=>, and watch the trailer here <https://urldefense.proofpoint.com/v2/url?u=https-3A__columbia.us6.list-2Dmanage.com_track_click-3Fu-3Dab15cc1d53-26id-3D780a9f2760-26e-3D763bcf158c&d=DwMFaQ&c=009klHSCxuh5AI1vNQzSO0KGjl4nbi2Q0M1QLJX9BeE&r=I9zAJIudsa5yxlT_Id_PF9eN7Z6KIuzTooqox3bxfWw&m=TX7rHJ1lZZFiozKR5DCQmwgy2vQO523AuVMSyehQbmenVZAu_StyEDGUSs7CJ1Gq&s=4sbpNE3nryGXAMx2wcR8ipMB8DeVrjAxvUyF7nZ6jcY&e=> . - CCSI, in partnership with E3G, an independent climate change think tank based in London, UK, *is conducting a survey *to better understand the economic, financial and regulatory factors that drive and/or limit the necessary domestic and foreign investments in renewable energy sectors. We hope to use the results of this survey combined with desk research to determine the fundamental determinants (and constraints) of renewable energy investments, and the corresponding ways in which economic, policy and regulatory frameworks can be strengthened to accelerate renewable energy investments. *If you are in the renewable energy industry, and are interested in participating in this survey or would like to receive more information about this project, please contact Ladan <[log in to unmask]>.* Karl P. 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Sauvant, PhD* *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> "The WTO Investment Facilitation for Development Agreement Needs a Strong Provision on Responsible Business Conduct", *Investment Facilitation for Development: A Toolkit for Policy Makers. Second Edition,* "Agenda for Practice-oriented Research", "WTO Processes Would Benefit from the Input of Civil Society", "How Would a Future WTO Agreement on Investment Facilitation for Development Encourage Sustainable FDI Flows, and How Could it be Further Strengthened?”, "What Foreign Investors Want: Findings from an Investor Survey", "Incentivising Sustainable FDI", "Green FDI: Encouraging Carbon-neutral Investment", "Extending International Legal Aid from Trade to Investment: An Advisory Centre on International Investment Law", "More Attention to Policies! Improving the Distribution of FDI Benefits", "Facilitating Sustainable FDI in a WTO Investment Facilitation Framework: Four Concrete Proposals", "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. 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