| EMBARGO The contents of this press release and the related Report must not be quoted or summarized in the print, broadcast or electronic media before 24 May 2011, 11:00 am [GMT] |
Geneva, 24 May 2011 -- The latest joint UNCTAD-Organization for Economic Cooperation and Development (OECD) report on investment measures taken by G20 countries concludes that from mid-October 2010 to mid-April 2011, most new measures eliminated restrictions to international investment and/or improved clarity for foreign investors.
The G20 has requested the two international organizations to monitor members´ investment measures to ensure that protectionist policies are avoided. The request, first made at the height of the global financial crisis in 2008, was reiterated recently by the G20.
The anti-protectionist character of the G20 countries over the latest six-month period contrasts with the global picture, where the last six months have seen an increase in measures restricting or regulating foreign investment. Restrictive measures now stand at 35 per cent of all policy measures adopted - the highest proportion since 1992, when UNCTAD first published data on this issue.
The policy developments covered by the most recent report took place in a situation where - unlike global GDP and trade flows - global investment flows have not recovered to their pre-crisis levels, as reported in UNCTAD´s latest Global Investment Trends Monitor (http://www.unctad.org/en/docs/webdiaeia20114_en.pdf). Moreover, a number of risks to a full recovery of foreign direct investment (FDI), including protectionist pressures, persist.
The report is accompanied by a joint summary written by the World Trade Organization (WTO) and by OECD and UNCTAD on G20 trade and investment measures.
The report and summary are being issued in response to the G20 leaders´ request, made at the Seoul Summit on 11-12 November 2010, for continued monitoring. In their Summit declaration, the G20 officials reaffirmed their commitment to resisting protectionism until the end of 2013, and asked WTO, OECD and UNCTAD to continue monitoring the situation and to report publicly on a semi-annual basis.
For the period between 16 October 2010 and 28 April 2011, the joint report shows that:
- Seven G20 members adopted investment-specific policies;
- Nine G20 members adopted emergency and related measures with potential impacts on international investment;
- One G20 member adopted an investment measure related to national security; and
- Eight G20 members concluded six bilateral investment treaties (BITs) and six other agreements with investment provisions ("other IIAs").
The simultaneous trends towards liberalization and regulation of investment, and the attendant dichotomy in investment policymaking, indicate countries´ appreciation of the importance of FDI, with a view towards harnessing it as a driving force for the growth of the global economy and for sustainable development. The activities in the framework of the G20´s "Multi-Year Action Plan on Development" contribute to harnessing investment for these objectives, too. These include the contributions by UNCTAD and other organizations to the pillar on "private investment and job creation", and the contributions by UNCTAD, the Food and Agriculture Organization (FAO), the International Fund for Agricultural Development (IFAD) and the World Bank to the pillar on "food security", including responsible agriculture.
