On this page
What does the initiative cover?
The Investment Facilitation for Development (IFD) Joint Initiative aims to develop a framework of rules governing the administrative procedures and requirements related to countries’ investment approval processes. In New Zealand, the Overseas Investment Office (OIO) is primarily responsible for the administration of these processes.
The IFD Joint Initiative seeks to:
- Promote transparency and predictability, by introducing requirements for participating Members to publish investment laws and regulations, and to publish information about their investment authorisation procedures.
- Introduce certain minimum standards in countries’ administrative procedures and requirements (for example, accepting investment applications throughout the year or having timeframes for decision-making); and
- Encourage international cooperation, information sharing, and exchange of best practices.
What is not covered?
The following three areas are not covered by the IFD:
- Matters related to investment market access. The framework of rules does not prevent participating WTO Members from having investment screening regimes like those established under New Zealand’s Overseas Investment Act 2005. Countries are also not required to grant screening approvals to any specific foreign investors – these are matters that will remain up to each country to decide according to their individual circumstances.
- Investment protection measures. These measures provide protection for investors in certain circumstances, such as in the event of war or civil strife or expropriation.
- Investor state dispute settlement (ISDS) which allows companies to seek damages from governments.
Who is involved and what has the process been so far?
Negotiations for the ‘Agreement on Investment Facilitation for Development’ were formally launched in September 2020. After more than three years of negotiations, participants agreed a final text in November 2023.
At the WTO's 13th Ministerial Conference (MC13) in Abu Dhabi in February 2024, IFD Ministers issued a Joint Ministerial Declaration, finalising the IFD Agreement and making it available to the public. The finalised text can be accessed at this link: Joint Ministerial Declaration on the IFDA (WT/MIN(24)/17/Rev.1)(external link)
Currently, there are 126 WTO members participating in the initiative. These participants have requested that the IFD be incorporated into the WTO framework as a plurilateral agreement, open for all WTO members to join, under Annex 4 of the WTO’s Marrakesh Agreement.
For the latest news on the WTO Investment Facilitation for Development Joint Initiative, visit the WTO website(external link).
For more information on New Zealand’s reasons for joining the negotiation see the Cabinet paper on WTO Plurilateral negotiations on Investment Facilitation for Development.
Have your say
For details on our upcoming trade policy events, see our public engagement on trade page.