The Joint Initiative on Investment Facilitation: Developments from 2020 and the road ahead to MC12

The document tracks the evolution of the WTO's Joint Initiative on Investment Facilitation, which grew to 106 signatories by February 2021. It details the shift from 'structured discussions' to 'negotiating mode' in September 2020, the impact of COVID-19 on foreign direct investment (FDI) and the negotiation process, and the development of key drafting documents including the 'informal consolidated text' and the 'Easter Text'. Key areas of negotiation include transparency of investment measures, streamlining administrative procedures, and the creation of 'firewall' language to insulate the framework from the international investment agreement (IIA) regime.

• The Joint Initiative on Investment Facilitation expanded its membership from 70 original signatories in December 2017 to 106 WTO members as of February 15, 2021.
• The COVID-19 pandemic caused significant drops in global foreign direct investment (FDI) flows, particularly affecting least-developed countries (LDCs) in their natural resources and tourism sectors.
• In response to the pandemic, there was an increase in national-level investment regulations and restrictions to prevent 'hostile foreign takeovers' of domestic businesses in strategic sectors, exemplified by the European Union's operationalization of its foreign investment screening system in 2020.
• The process transitioned from 'structured discussions' to 'negotiating mode' in September 2020, moving from a phase of understanding and clarifying proposals to a 'give and take' process to determine the final content of the framework.
• Negotiators are developing a 'firewall' to ensure the investment facilitation framework remains separate from the international investment agreement (IIA) regime, specifically to avoid implications for treaty-based investor-state dispute settlement (ISDS) claims.
• A roadmap established in January 2021 aims for a substantive outcome by the WTO's Twelfth Ministerial Conference (MC12), with the 'Easter Text' serving as a critical mid-term milestone to become the main drafting basis for the future agreement.

APA

Baliño, S., Bernasconi-Osterwalder, N., & Campos, S. L. (2021). The Joint Initiative on Investment Facilitation: Developments from 2020 and the road ahead to MC12. International Institute for Sustainable Development. https://www.iisd.org/system/files/2021-05/joint-initiative-investment-facilitation-en.pdf

Chicago

Baliño, Sofía, Nathalie Bernasconi-Osterwalder, and Soledad Leal Campos. The Joint Initiative on Investment Facilitation: Developments from 2020 and the road ahead to MC12. International Institute for Sustainable Development, 2021. https://www.iisd.org/system/files/2021-05/joint-initiative-investment-facilitation-en.pdf.

Wikipedia

{{cite report |last1=Baliño |first1=Sofía |last2=Bernasconi-Osterwalder |first2=Nathalie |last3=Campos |first3=Soledad Leal |title=The Joint Initiative on Investment Facilitation: Developments from 2020 and the road ahead to MC12 |publisher=International Institute for Sustainable Development |date=April 2021 |url=https://www.iisd.org/system/files/2021-05/joint-initiative-investment-facilitation-en.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{balio2021joint, author = {Baliño, Sofía and Bernasconi-Osterwalder, Nathalie and Campos, Soledad Leal}, title = {{The Joint Initiative on Investment Facilitation: Developments from 2020 and the road ahead to MC12}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = apr, url = {https://www.iisd.org/system/files/2021-05/joint-initiative-investment-facilitation-en.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }