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Predictable and transparent investment rules that follow principles of due process can help to build a stable environment for attracting capital. At the same time, these rules also ensure that businesses can have confidence in the systems they are looking to invest in.
In joining this negotiation, New Zealand is seeking to contribute to the Government’s goals of a favourable international trade and economic environment, including attracting high quality, productive investment in New Zealand. We want to provide New Zealanders and our companies more certainty as to the rules applicable when investing offshore.
For more information on New Zealand’s reasons for joining the negotiation, and the issues under discussion, see the Cabinet paper on WTO Plurilateral negotiations on Investment Facilitation for Development.
For the latest news on the WTO Investment Facilitation for Development Joint Initiative, visit the WTO website(external link).
What does the initiative cover?
The aim of these World Trade Organization (WTO) negotiations is 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 finalised text can be accessed at this link: Joint Ministerial Declaration on the IFDA (WT/MIN(24)/17/Rev.1)(external link)
The Investment Facilitation for Development (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?
At the 11th WTO Ministerial Conference in Buenos Aires in December 2017, 70 WTO members including New Zealand signed on to a Ministerial Statement on Investment Facilitation for Development. That Statement called for the beginning of discussions which are open to any WTO member wanting to participate.
Following over two years of preparatory work and discussions, the participants formally launched negotiations on an 'Agreement on Investment Facilitation for Development' (IFD Agreement) in September 2020. In November 2023, after more than three years of negotiations, participants finalised the text of the IFD Agreement, after concluding its legal review.
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. As next steps, Participants aim to incorporate the plurilateral IFD Agreement into Annex 4 of the WTO Agreement.
Currently, there are 125 WTO Members participating in the Joint Initiative, comprised of a mix of developed, developing and Least Developed country Members, and this number is expected to keep growing. Participation in this Joint Initiative is open to all WTO members.
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For details on our upcoming trade policy events, see our public engagement on trade page.