INF/IFD/R/ 25 
15 October 2021 
(21-7831) Page: 1/5 
  Original: English  
 
  
WTO STRUCTURED DISCUSSIONS ON  INVESTMENT   
FACILITATION FOR DEVELOPMENT  
NEGOTIATING MEETING HELD ON 12 AND 13 JULY 2021 
Summary of discussions by the Coordinator1 
An open -ended negotiating meeting of the Structured Discussions on Investment Facilitation for 
Development, coordinated by Ambassador Mathias Francke (Chile), was held on  12 and 13 
July 2021.  As indicated in the annotated agenda circulated to all WTO Members ahead of the 
meeting ,2 the objectives  of the meetin g were: (a) to h ear the reports of the facilitators of the 
Discussion Groups respectively on 'Scope' and 'Facilitation of the Entry and Temporary Stay of 
Business Persons for Investment Purposes' (Movement of Business Persons – MBP);  (b) to d iscuss 
provision 35 on 'Dispute Settlement' ; (c) to d iscuss the 'Preamble' and provision 1 on 'Objectives'; 
(d) to r eview the provisions in the 'text box' under title 31 'Measures against corruption';  (e) to 
discuss provision 36 on 'Final Pr ovisions'; and  (f) to conduct a stocktaking exercise to assess the 
progress achieved thus far and plan ahead for the second half of the year up to MC12.  In addition, 
two text proposals were presented by Members respectively on provision 30 ('Responsible Bu siness 
Conduct')3 and provision 31 ('Measures Against Corruption') .4 
1  TEXT CONTRIBUTION FROM THE DISCUSSION GROUP ON 'SCOPE' AND REPORT BY THE 
FACILITATOR OF THE DISCUSSION  GROUP ON 'MOVEMENT OF BUSINESS PERSONS'  
1.1.  The facilitator of the Discussion Group on  'Scope' , Mr. Manuel  Chacón from Colombia,  presented 
the Group's text contribution on  the definitions of 'measure' and 'investment activities',5 both terms 
being used in the first paragraph  of the 'Scope' provision  (itself based on a text contribution 
presented by the Group at a previous meeting6). The facilitator reported that the Group's work on 
three other definitions  ('investor of a Member ', 'investment ', and 'enterprise ') and on possible 
exclusions from the scope of application o f the Agreement was still ongoing.  
1.2.  The proposed definition of 'measure', based on Article XXVIII(a) of the GATS, was  overall well 
supported  by participants . A couple of delegation s raised concerns regarding the last part of that 
definition , namely the phrase "or any other form" , which they considered as too open -ended – in 
particular in light of the IFD Agreement 's wide scope . Another participant  expressed its openness to 
use the proposed broad definition of 'measure' based on the understanding that it would serve as a 
'ceiling' to the overall scope of the future Agreement and that individual provisions  of the Agreement 
may stipulate a narrow er scope , as appropriate . Participant s shared  a common understanding that  
the 's cope' had to be seen as a package  – also including the exclusions  from the scope  as well as 
certain definitions . A couple of delegations advocated  that the scope include d a reference to the 
Agreement's facilitation objective. The proposed definition of 'investment activities',  which cover s 
the whole investment lifecycle  (pre- and post -establishment phases), was also well received . A 
Member , however , reserved its position on this definition , reiterating  its concerns  about cover ing 
the pre-establishment  phase . Another Member  questioned the use of the term 'maintenance '.  
 
1 This summary, prepared and circulated under the Coordinator's responsibility, provides a non -
exhaustive, illustrative review of the issues addressed by Members at the meeting.  
2 Document INF/IFD/W/3 5 dated 8 July  2021.  
3 Document INF/IFD/RD/77 dated 1 3 July 2021 . 
4 Document INF/IFD/RD/78 dated 1 5 July 2021 . 
5 Text contribution submitted by the 'Discussion Group on Scope' on the definitions of 'measure' and 
'investment activities' circulated to all Members on 9 July 2021.  
6 Text contribution submitted by th e 'Discussion Group  on Scope' on the first paragraph on 'Scope' 
circulated  to all Members on 14 June 2021.  INF/IFD/R/ 25 
 
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  1.3.  The facilitator of the Discussion  Group on 'Movement of business persons for investment 
purposes' (herea fter 'MBP') , Mrs. Debora Ponce from Guatemala, informed the plenary that the 
Group's last meeting  had focused on a draft on a possible 'T ransparency provision for MBP' . In this 
regard , the facilitator informed that she would circulate within the Discussion  Group a revised version 
of this working provis ion incorporating suggestions made by participants during the discussions . 
Participants who took the floor considered  that the draft on a possible transparency provision  was 
going in the right direction . A Member stated that it saw a possible way forward f or a provision on 
transparency but  was unprepared to engage in a discussion on  the administration of MBP measures  
as well as  on any procedur al requirements . A few Members expressed their openness to engag e in 
discussions  on administrative procedures as well . 
2  DISCUSSION OF THE 'PREAMBLE' AND PROVISION 1 ON 'OBJECTIVES'  
2.1.  Participating Members discussed the Preamble of the future IFD Agreement together with the 
provision on 'Objectives' , focusing on the ir respective  functions , with a view to avoid overlaps  
between the two. Regarding the Preamble, which provides context for the application of the future 
Agreement, participants emphasized key points  to be included , notably: the rationale behind the 
future IFD Agreement  (facilita tion/simplification) , the importance of a predictable regulatory 
environment and international cooperation,  the link to sustainable development  and the SDGs , the 
special needs of developing and LDC Members, the specific consideration to be given to the situation 
of small and medium -sized enterprises,  and Members' right to regulate.  The importance that the 
Preamble reflect ed, in a balanced manner,  the key elements contained in the future IFD Agreement  
was emphasiz ed. Some participants favoured using in the Preamble  the more generic term 
'investment' instead of 'cross-border ' investments . 
2.2.  Regarding a provision on 'Objectives' , several participating Members saw value in including 
such a provision , while other s were s till reviewing whether a provision on 'Objectives' was needed.  
Recognising that there were many overlaps among the different proposals contained in the 
'Preamble' and 'Objectives' provisions, the Coordinator suggested t hat he  prepare d 'Revised D raft 
Text' to streamline the provision  on 'Objective s'. 
3  PROVISION 30 'RESPONSIBLE BUSINESS CONDUCT'  
3.1.  Participants discussed the proposal submitted by a Member for provision 30 on 'Responsible 
Business Conduct'  (RBC).7 The proponent  explained that the rationale behind its proposal was to 
consider  the issue of how governments c ould encourage investors to voluntarily  incorporate  RBC 
standards. In this regard, the proponent clarified that its proposal was drafted as an alternative text 
formulation for  this provision, focusing on Members' obligation to publish via electronic means those 
internationally recognized RBC principles and standards they endorse d or supported . Participants 
questioned the value added of the proposal , highlighting t hat these RBC principles and standards 
were usually already  available online . Participants further considered that  the substance of the 
proposal (limited to publication) was too narrow and that  the RBC provision in the Easter Text8 
already  provide d an adequate level of flexibility  for Members to encourage the uptake of RBC 
principles and standards by investors. In this context , some Members provided examples to illustrate 
how this obligation could be implemented (e.g. , by providing training to agencies and  stakeholders 
on RBC principles, establishing a national contact point to support the implementation of RBC 
principles, and creating an ombudsperson for addressing claims of abuses arising from the 
operations of companies ).  
3.2.  Following questions posed by th e Coordinator at a previous meeting on  the inclusion of the 
terms "Indigenous people"  and "traditional communities"  in the RBC provision, the proponent of the 
term "Indigenous people"  explained that meaningful engagement with stakeholders and local 
communities was reflected in several international instruments on RBC  – notably the UN Guiding 
Principles on Business and Human Rights , and the OECD Guidelines on Multinational Enterprises . 
The engagement with " Indigenous people " was explicitly mentioned in the OECD Due Diligence 
Guidance for Meaningful Stakeholder Engagement in the Extractive Sector . The proponent of the 
term "traditional communities"  clarified that it considered the RBC pro vision should not only refer to 
internationally recognised standards, but also to business practices and internal policies. In this 
 
7 Document INF/IFD/RD/7 7 dated 1 3 July 2021.  
8 Document INF/IFD/RD/74 dated 12 April 2021.  INF/IFD/R/ 25 
 
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  context, the proponent explained that  the rights of traditional communit ies were stated in its 
country's domestic legislatio n as well as in  local customary law . 
4  DISCUSSION OF PROVISION 31 ON 'MEASURES AGAINST CORRUPTION'  
4.1.  Two participants introduced a Joint proposal for provision 31 on 'Measures Against Corruption' ,9 
replacing their previous respective proposals. Proponents ex plained that it  was drafted follow ing a 
similar approach as the RBC provision, by referring to existing relevant international obligations on 
the matter . The proponents clarified that they had focussed the scope of their proposal  on anti-
corruption (removi ng references to terrorism financing, etc. ) and included, as an option, the mention 
of money laundering .10 Many participants  welcomed the more focused proposal , considering that it 
went in the right direction. A few participants  reiterated their preference for a more detailed 
provision , modelled after the comprehensive text proposal by a Member included in the 'Easter Text' , 
consider ing that it provide d more clarity in terms of  the obligations that Members would be 
under taking on  this matter . The proponent of that proposal clarified that its proposal did not expand 
or modify existing international instruments  on anti -corruption . Rather , it was based on the United 
Nations Convention against Corruption  (UNCAC ) but restricted to inve stment facilitation -relevant 
matters.   
4.2.  Another delegation announced that it would submit a text proposal on this provision, explaining 
that, in its view , a short and simple provision would be more appropriate in the context of the future 
IFD Agreement, given that the anti -corruption issue was already addressed at length in other 
international instruments  (notably UNCAC). 
5  DISCUSSION OF PROVISION 35 ON 'DISP UTE SETTLEMENT'  
5.1.  Participating Members discussed provision 35 on 'Dispute settlement'  contained in Section  VII 
('Institutional arrangements and final provisions') of the Easter Text , expressing their support for 
making dispute s concerning the interpretatio n and application of the provisions of the future IFD 
Agreement subject only to the Understanding on Rules and Procedures Governing the Settlement of 
Disputes (DSU) of the WTO . Participants supported a  text proposal encouraging Members to resort 
to good of fices, conciliation , and mediation for resolving their disputes.  Regarding this proposal , a 
Member suggested making th ose non -adjudicative means for resolving disputes  a prior step before 
invoking a panel.  Most participants shared the view that it would be  more appropriate to encourage 
the use of non-adjudicative mechanisms under the DSU  – however without  making them a 
mandatory step  before resorting to adjudication .  
5.2.  Regarding exceptions, most participating Members  favoured  exclud ing both r esponsible 
business conduct and anti-corruption  measures  from the application of the DSU. A Member  proposed 
to exclude the possibility of resorting to cross-retaliation under  Article 22.3.(c)  of the DSU given that 
the future IFD Agreement would not include  market access  commitments . Several  participating 
Members indicated that they were still assessing whether the exclusion of non -violation complaints 
was needed.  The Coordinator announced that he w ould present 'Revised draft text ' on provision  35 
on 'Disput e Settlement'  based on  the discussion  at the meeting.  
6  DISCUSSION OF PROVISION 36 ON 'FINAL PROVISIONS'  
6.1.  Participating Members discussed provision 36 on 'Final provision s', stating that they were 
still considering the elements to be included under  this provision, particularly  the reference to 
Section  V on 'Special and Differential Treatment ' (S&DT ). Some participants suggested including 
additional elements  such as: accession of othe r Members (depending on the final legal architecture 
of the Agreement ); implementation of S&DT categories B and C ; entry into force ; as well as  
amendments.  A Member suggested using the T rade Facilitation Agreement  as a basis for the 'Final 
provisions' part icularly in relation to the inclusion of a clause relating to implementation and special 
and differential treatment.  
6.2.  Participating Members also saw value in including a paragraph addressing the relationship 
between the future IFD Agreement and the rights and obligation s of Member s under other WTO 
 
9 Document INF/IFD/ RD/78 dated 15 July 2021.  
10 It was argued  that money laundering (illicit money flows) could , in certain cases,  constitute a motive 
for outward FDI flows . INF/IFD/R/ 25 
 
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  Agreements. On this issue, most participant s advocated a text formulation that would make a 
reference to the GATT 1994, GATS, and TRIMs  Agreement . It was  pointed out that the third 
paragraph of provision 36 on 'Final Provisions'  concerning the non -application of the MFN clause to 
treatment accorded under a bilateral or plurilateral agreement (paragraph in black numbered 32.3  
in the 'Easter Text' , document INF/IFD/RD/74 ) would be addressed as part  of a possible MFN 
provision . Similarly, the fourth paragraph concerning the relation  between the IFD Agreement and 
other international agreements covering investment (paragraph in black numbered 32.4 in the 
'Easter Text') would be addressed under the scop e and possible exclusions . Thus, paragraphs 32.3 
and 32.4 under provision 36 on 'Final Provisions'  could be deleted .11  
7  STOCKTAKING OF WORK OVER THE PERIOD JANUARY -JUNE 2021 AND NEXT STEPS  
7.1.  WTO Director General, Dr Ngozi Okonjo -Iweala delivered opening remarks  at the session – 
highlighting considerable progress of the negotiations  and emphasizing  that facilitating investment 
flows to developing countries would be essential to sustain and accelerate the post -pandemic 
economic recovery – including the global vaccine roll -out and scale up of manufacturing capacity , 
notably in developing and least -developed economies . She also stressed  that a shared endeavour of 
all Members was key to create a more effective environment for doing business and more predictable 
conditions to attract sustainable investment flows . Given t he urgent need to put global invest ment 
back on track , DG Okonjo -Iweala encouraged Members to keep advancing the negotiations  with an 
aim to present a text showing substantial and meaningful progress  at MC12 .12  
7.2.  The Coordinator debriefed the plenary  about  the main outcomes of the informal bilateral 
consultations he had held with interested delegations  ahead of the meeting .13 All delegations in these 
consultations had expressed satisfaction with the progress achieved in the first half of the year  – 
especial ly considering  that the negotiations had been launched only since September 2020 . Many 
delegations in the consultations had highlighted  that the Easter Text was a key point in the process , 
allowing participating Members to focus on a single negotiating tex t and on those parts that need ed 
further work . Special mention had been  made of the important  work carried out by the facilitators 
of the two Discussion Groups respectively on 'Scope' and  the 'Movement of business persons for 
investment purposes' . Many par ticipating Members had expressed their  overall satisfaction notably 
with Sections II and IV of the future Agreement. The importance of making further progress on the 
provision on 'S cope' (including related exclusions and definitions) as well as on the key Section V on 
'Special and Differential Treatment for Developing and Least -Developed Country Members'  had been  
emphasized. The questions of the integration of the future IFD Agreement in to the WTO legal 
architecture and outreach to non -participating Members had also been mentioned by many 
delegations in the consultations.  
7.3.  At the meeting, p articipating Members took stock of, and expressed their satisfaction  with, the 
progress achieved thus far. The Ambassador of China delivered a statement on behalf of  the Friends 
of Investment Facilitation for Development  (FIFD),14 echoed by several delegations, highlighting the 
significant progress achieved, and emphasizing the importance of the future IFD  Agreement for the 
post-pandemic recovery  and sustainable growth . He also stated FIFD's intention to intensify outreach 
efforts with a view to enhancing the understanding of the future Agreement's benefits.  In particular, 
participants welcomed the substant ive progress achieved in the negotiations on the basis of the 
'Easter Text'  circulated in April 2021, which was deemed a milestone  in the negotiations as it had 
allowed participants to negotiate on the basis of a 'single text' , helping them to focus their attention 
on those issues that required further work. Since the issuance of the 'Easter Text', negotiations had 
considerably progressed on key substantive pillars of the future IFD Agreement  – particularly on 
Sections II on 'Transparency of investmen t measures' and III on 'Streamlining administrative 
procedures ', as well as most parts of Section IV on 'Focal points, domestic regulatory coherence, 
domestic supplier databases and cross -border cooperation '. In this context, t he Coordinator 
announced that , before the August break , he would circulate a revised version of the  'Easter Text ' 
('Easter Text  – Revision 1' ) reflect ing the advancement in the negotiations since April – with a view 
 
11 See p. 38 of the  original version of the  'Easter Text' contained in document INF/IFD/RD/74.  
12 'DG Okonjo -Iweala welcomes progress on investment facilitation' .  
13 Prior to the meeting, the Coordinator conducted informal bilateral consultations with interested 
delegation s at the beginning of July 2021.  
14 Friends of Investment Facilitation for Development (FIFD), currently consisting of 18 developing 
countries . INF/IFD/R/ 25 
 
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  to further facilitat ing the discussions and provid ing a clearer view of the contours of the future  
Agreement . 
7.4.  Participants commended the Coordinator for his leadership and effective approach, as well as 
the Secretariat for its support to the negotiations . They reiterated their satisfaction with the 
important work carried out by the facilitators of the two Discussion G roups in steering their 
respective  Group towards produc ing convergence text.  
7.5.  Regarding next steps up to MC12, participating Members emphasized the importance, in the 
coming months, t o focus on  advancing  notably the provisions on scope/objectives as well as 
Section  V on S&DT . On the latter , many delegations considered that  technical assistance and 
capacity building were key to help developing and LDC  Member s implement the future IFD 
Agreement . Members also stressed the importance of intensify ing outreach activities to wards  the 
wider WTO Membership. All participants reiterated their commitment  and readiness to actively 
engag e and work towards an 'as clean as possible' text, highlighting the importance of a substantial 
outcome for MC12.  
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