Declaration of the Conclusion of the 'WTO Investment Facilitation Agreement'... "Enhancing Transparency in Developing Countries to Expand Investment"

Jeong In-kyo, Director General for Trade Negotiations at the Ministry of Trade, Industry and Energy (second from the right), on the 25th (local time) at the Abu Dhabi National Exhibition Centre in the United Arab Emirates (UAE), announced the Joint Ministerial Declaration of Investment Facilitation Negotiating Countries during the 13th WTO Ministerial Conference, attended by trade ministers from participating and interested countries in the investment facilitation negotiations.

The World Trade Organization (WTO) Agreement on Investment Facilitation for Development, jointly chaired by Korea and Chile, has been concluded. The Korean government expects that the transparency of investment procedures in developing countries will improve, enabling smoother foreign investment.

On the 25th (local time), the Ministry of Trade, Industry and Energy announced that 123 WTO member countries, including Korea, declared the conclusion of the Investment Facilitation Agreement during the 13th WTO Ministerial Conference (MC-13) held in Abu Dhabi, United Arab Emirates (UAE).

This joint ministerial declaration was issued to announce the final conclusion of the WTO Investment Facilitation Agreement and to reaffirm the support of participating countries for future procedures such as the incorporation of the agreement into the WTO framework. Immediately after the joint ministerial declaration, a request for accession to incorporate the Investment Facilitation Agreement into the WTO system was circulated, and the negotiating parties plan to promote the incorporation of this agreement into the WTO framework during this ministerial conference.

The agreement aims to promote foreign investment in developing countries by resolving various obstacles arising during the investment process through transparent disclosure of each country’s investment measures and simplification of related procedures. The agreement also requires countries to disclose key information such as investment-related laws and regulations, approval requirements, and procedures in advance through a single window, and to provide equal opportunities for stakeholders to present their opinions. It includes obligations to simplify and expedite approval procedures, impose reasonable fees, and encourage the use of e-government systems.

An official from the Ministry of Trade, Industry and Energy explained, "The Investment Facilitation Agreement enhances the transparency of investment procedures and administrative matters related to investment in each country. It aims to strengthen transparency so that countries do not conduct investment-related systems and permits behind closed doors, but rather make them clearly accessible to foreign investors."

The WTO Investment Facilitation Agreement, which aims to promote foreign direct investment and sustainable development in developing countries by resolving various difficulties arising during the investment process through transparent disclosure of investment measures and simplification of related procedures, officially launched as a plurilateral negotiation in September 2020, and the agreement text was finalized in July last year. Korea, together with Chile, has served as a co-chair of the negotiations, with Deputy Economic Minister Park Jeong-seong of the Permanent Mission to Geneva presiding over the talks.

Jung In-kyo, Director-General for Trade Negotiations at the Ministry of Trade, Industry and Energy, said, "The WTO Investment Facilitation Agreement can play a role in responding to the global complex crises."

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