Investment facilitation agreement finalised

Ministers representing 123 World Trade Organisation (WTO) members have finalised the Investment Facilitation for Development (IFD) Agreement, marking a significant milestone in global investment and trade history.

The conclusion of this landmark agreement, aimed at facilitating investment flows to drive growth and sustainable development, was announced yesterday at the 13th WTO Ministerial Conference (MC13) in Abu Dhabi, the United Arab Emirates (UAE) with the ministers issuing a submission asking for the conference to incorporate the IFD Agreement into Annex 4 of the Marrakesh Agreement establishing the WTO.

Participants represent three-quarters of the WTO membership, including close to 90 developing economies and 26 least-developed economies.

Welcoming this development, the Minister of Trade and Industry Sosten Gwengwe said as a member of the WTO, Malawi has been actively participating on the joint initiative on the IFD.

According to the minister, the agreement, being plurilateral rather than multilateral in nature, provides the necessary flexibility to countries and faster convergence on issues.

Said Gwengwe: “It’s more focused as a way of making investment climate more conducive and annexing it to the Marrakesh Agreement makes it get the prominence it deserves.”

The IFD Agreement holds immense promise in enhancing investment climates worldwide, and by providing clear and consistent global benchmarks for investment facilitation, it aims to reduce regulatory uncertainty and streamline processes.

WTO director general Ngozi Okonjo-Iweala highlighted the importance of the achievement.

She stated that members created a pioneering agreement that aims to attract the foreign direct investment (FDI) they want.

“Hence, this allows to drive growth, productivity, job creation, and integration.

The IFD Initiative includes over 85 developing economies and 25 LCDs.