The Proposed Multilateral Framework on Investment Facilitation

The report examines the proposed Multilateral Framework on Investment Facilitation (MFIF) being developed through a Joint Statement Initiative (JSI) among WTO Members. It identifies significant overlaps between the MFIF and existing WTO agreements, particularly the General Agreement on Trade in Services (GATS) and the JSI on Services Domestic Regulation (SDR), noting that the MFIF often imposes 'GATS-extra' obligations. The analysis warns that despite the MFIF's explicit exclusion of investor-state dispute settlement (ISDS), its disciplines could still be enforced through IIAs via umbrella clauses, fair and equitable treatment (FET) standards, and most-favoured-nation (MFN) provisions, potentially exposing states to monetary compensation claims in investor-state tribunals.

• The scope of the proposed MFIF is currently unclear and potentially very broad, as it aims to apply to measures facilitating foreign direct investment (FDI) 'across the whole investment life-cycle' in both services and non-services sectors.
• The MFIF creates obligations that go significantly beyond those in the GATS, including 'GATS-extra' requirements for transparency, administrative procedures, and authorization processes that apply across all sectors regardless of specific commitments.
• There is substantial substantive overlap and potential duplication between the MFIF and the Joint Statement Initiative on Services Domestic Regulation (SDR), with some provisions being largely similar or verbatim.
• The MFIF's MFN clause could lead to the 'multilateralization' of investment facilitation measures, potentially extending benefits to all WTO Members or importing standards from bilateral investment treaties (BITs).
• Despite the MFIF's explicit statement that it 'shall not cover: investment protection rules; and, investor–state dispute settlement,' its disciplines could still be invoked in ISDS tribunals through 'umbrella clauses' found in 43% of IIAs.
• The MFIF could influence the interpretation of the Fair and Equitable Treatment (FET) standard in IIAs, as tribunals may view MFIF commitments as creating 'legitimate expectations' for investors.
• The MFIF currently lacks a national treatment provision, meaning Members could potentially apply more favourable processes for domestic investors than for foreign investors.
• The 'development' dimension of the MFIF is primarily addressed through special and differential treatment (S&DT) using a category-based approach (Categories A, B, and C) similar to the WTO Trade Facilitation Agreement (TFA).

APA

Bernasconi-Osterwalder, N., Campos, S. L., & van der Ven, C. (2020). The Proposed Multilateral Framework on Investment Facilitation. International Institute for Sustainable Development. https://www.iisd.org/system/files/2020-09/multilateral-framework-investment-facilitation-en.pdf

Chicago

Bernasconi-Osterwalder, Nathalie, Soledad Leal Campos, and Colette van der Ven. The Proposed Multilateral Framework on Investment Facilitation. International Institute for Sustainable Development, 2020. https://www.iisd.org/system/files/2020-09/multilateral-framework-investment-facilitation-en.pdf.

Wikipedia

{{cite report |last1=Bernasconi-Osterwalder |first1=Nathalie |last2=Campos |first2=Soledad Leal |last3=van der Ven |first3=Colette |title=The Proposed Multilateral Framework on Investment Facilitation |publisher=International Institute for Sustainable Development |date=August 2020 |url=https://www.iisd.org/system/files/2020-09/multilateral-framework-investment-facilitation-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bernasconiosterwalder2020proposed, author = {Bernasconi-Osterwalder, Nathalie and Campos, Soledad Leal and van der Ven, Colette}, title = {{The Proposed Multilateral Framework on Investment Facilitation}}, institution = {International Institute for Sustainable Development}, year = {2020}, month = aug, url = {https://www.iisd.org/system/files/2020-09/multilateral-framework-investment-facilitation-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }