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

This report by the International Institute for Sustainable Development (IISD) and CUTS International provides a stocktaking update on the World Trade Organization (WTO) Joint Initiative on Investment Facilitation. It details the transition from structured discussions to formal negotiations, the impact of COVID-19 on foreign direct investment (FDI) and governance processes, and the roadmap leading toward the Twelfth Ministerial Conference (MC12).

• The Joint Initiative on Investment Facilitation began in December 2017 with 70 WTO members aiming to create a framework to improve the transparency and predictability of investment measures, streamline administrative procedures, and enhance international cooperation. The framework explicitly excludes market access, investment protection, and investor-state dispute settlement from its scope.
• The COVID-19 pandemic caused significant drops in global foreign direct investment (FDI) flows, particularly affecting least-developed countries (LDCs) in the tourism and natural resources sectors. Additionally, approximately 43% of new investment policy measures in 2020 were regulations or restrictions, often intended to prevent "hostile foreign takeovers" during the public health crisis.
• The initiative has grown in membership, increasing from 100 signatories in early 2020 to 106 as of February 15, 2021. The process transitioned from "structured discussions" to "negotiating mode" in September 2020, moving from the clarification of proposals to active bargaining over the final content of the framework.
• Negotiators have utilized several evolving documents to guide the process, including a compendium of text-based examples, a working document, a streamlined text, and an informal consolidated text. As of April 2021, the group is focusing on the "Easter Text," which integrates revised draft inputs and member proposals to serve as the primary drafting basis for the final agreement.
• A critical point of negotiation involves creating "firewall" language to insulate the investment facilitation framework from the existing regime of international investment agreements (IIAs). This is necessary because there are approximately 2,600 IIAs in force, and there are concerns regarding how the framework might influence treaty-based investor-state dispute settlement (ISDS) claims.
• The proposed framework is organized into seven main sections: Scope and General Principles; Transparency of Investment Measures; Streamlining and Speeding Up Administrative Procedures and Requirements; Contact/Focal Point mechanisms; Special and Differential Treatment for developing and LDC members; Cross-Cutting Issues (including corruption and corporate social responsibility); and Institutional Arrangements.

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} }