Cooperation and Facilitation Investment Agreement - CFIA. Facilitation Initiatives

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1 Cooperation and Facilitation Investment Agreement - CFIA Facilitation Initiatives

2 COOPERATION AND FACILITATION INVESTMENT AGREEMENT BRIEF OVERVIEW Since the 90s, proliferation of Bilateral Investment Agreements (more than 3000 BITs) Focus on traditional protection Increase in the number of investor-state dispute settlement (ISDS) Main criticisms to ISDS: Lack of legal consistency of decisions (vague concepts) High financial cost of arbitration procedures and compensations Restriction to the regulatory discretion of States Little effective protection and high political costs -> (Almost) nobody wants litigation Investors want predictability and celerity; governments, policy space.

3 COOPERATION AND FACILITATION INVESTMENT AGREEMENT INVESTMENT FACILITATION Making it easier for investors to establish or expand their investments, as well as to conduct their day-to-day business in host countries : Improve transparency and information available to investors; Make administrative procedures for investors more efficient; Enhance the predictability of the policy environment for investors through consultation procedures; Increase accountability and effectiveness of government officials; Prevent and mitigate investment disputes; Technical cooperation and other support mechanisms for investment.

4 COOPERATION AND FACILITATION INVESTMENT AGREEMENT MAIN PILLARS OF CFIA 1. Improving institutional governance 2. Mechanisms for risk mitigation and prevention of disputes 3. Thematic agendas of cooperation and investment facilitation or Focal Point in each country Joint Committee National Treatment and MFN Direct expropriation Mechanisms of transparency and access to information Business Visa facilitation Payment and currency transfers Regulatory and institutional cooperation exchanges National Committee of Investments, (Coninv) Continuous and prominent participation of the private sector Corporate social responsibility Transfer of funds and currencies Dispute prevention system (phases, time frame, etc). Technical and environmental regulation Professional training Logistics and transports Other

5 COOPERATION AND FACILITATION INVESTMENT AGREEMENT INSTITUTIONAL GOVERNANCE or Focal Point in each country Facilitator between investors and governments; Information about regulatory matters and business issues; Only investors from a Part are granted direct access to the Brazilian ; Follow up on requests and enquiries of the investors with the national authorities; Continuous cooperation with the other /Focal Point and the Joint Committee with views to prevent disputes and improve capital flows. Joint Committee Continuous agreement monitoring and implementation; Sharing of investment opportunities and positive debate on barriers and obstacles; Strong participation of the investors in discussions and ad-hoc groups; Provides clear and binding Dispute Prevention Procedure.

6 NATIONAL COMMITTEE OF INVESTMENTS - CONINV Coninv is an interministerial body under the Foreign Trade Board (CAMEX), at the Presidency of Republic Recently created, its main objective is to formulate proposals and recommendations to the Ministers with views to promote and facilitate foreign investments in Brazil and Brazilian investments abroad. Among other functions, Coninv will: Identify international benchmarks of good practices related to investments; Conduct reviews of domestic investment policies; Seek to harmonize domestic investment policies; Consult with the private sector on issues related to the efficiency of administrative procedures. Receive contributions and proposals from the and the Joint Committees created under the CFIAs negotiated by Brazil => formulate concrete policy proposals with the objective of fostering an open, transparent and conducive policy environment for foreign investment in Brazil.

7 COOPERATION AND FACILITATION INVESTMENT AGREEMENT INVESTMENT FACILITATION INITIATIVES OF CFIAS Cooperation between monetary authorities, regarding risk management, systems of payments, financial inclusion, internal audit, etc. CFIA Brazil-Mozambique Business Visa Facilitation Protocol CFIAs signed with Mozambique, Angola, Malawi, Mexico, Colombia Cooperation in environmental legislation and technical regulations, with views to facilitate and speed the concession of licenses, certificates, etc. CFIAs signed with Mozambique, Angola, Malawi, Mexico, Colombia Cooperation in enhancing logistics and transportation between the countries CFIA Brazil-Colombia Cooperation with views to promoting productive linkages CFIA Brazil-Colombia

8 UNCTAD S GLOBAL ACTION MENU ON INVESTMENT FACILITATION VIS À VIS CFIA Action Line 1 - Promote accessibility and transparency in the formulation of investment policies, regulations and procedures relevant to investors Action Line 2 - Enhance predictability and consistency in the application of investment policies Action Line 3 - Improve the efficiency and effectiveness of investment administrative procedures Transparency Provisions NT and MFN Dispute Prevention System Joint Committee Action Line 4 - Build constructive stakeholder relationships in investment policy practice Joint Committee Thematic Agendas Action Line 5 - Designate a lead agency or investment facilitator with a specific mandate for disputes prevention and mediation Joint Committee

9 GLOBAL ACTION MENU ON INVESTMENT FACILITATION VIS À VIS CFIA Action Line 6 - Establish monitoring and review mechanisms for investment facilitation Action Line 7 - Enhance international cooperation for investment facilitation Action Line 8 - Strengthen investment facilitation efforts in developing-country partners through technical assistance Action Line 9 - Enhance investment policy and proactive investment attraction in developing-country partners Action Line 10 - Enhance international cooperation towards investment for development, including through provisions in IIAs National Committee of Investments (CONINV), under the Foreign Trade Board Joint Committee Thematic Agendas Thematic Agendas Thematic Agendas Corporate Social Responsibility Joint Committee

10 CONCLUDING REMARKS CHALLENGES AND SUGGESTIONS Importance of tackling facilitation agendas on both national and international levels; Cooperation and Facilitation Investment agreement call for a multidisciplinary approach; Some countries misunderstand the role of Ombudsmen/Focal Points in domestic matters; Ombudsmen/Focal Points should have political support and technical staff; Joint Committees should have a dinamic nature and aim at the long-term; Countries need to realize the colective and global benefits of voluntary Investment Facilitation; Support for UNCTAD and G20 discussions and commitments on this subject!

11 Thank you! Renato Rezende de Campos Souza Deputy Director of International Negotiations