The Trans-Pacific Partnership:

Transcription

1 The Trans-Pacific Partnership: Opportunities for Investment EVA HAMPL Director, Investment, Trade and Financial Services, USCIB

2 USCIB Mission Advance American business interests at home and abroad Promote our Core Values: Open Markets Competitiveness and Innovation Sustainable Development Corporate Responsibility International Engagement Regulatory Coherence

3 USCIB Affiliations USCIB is the United States affiliate organization at: International Chamber of Commerce International Organization of Employers Business & Industry Advisory Committee to the OECD

4 TPP Background Regional trade agreement negotiations to produce 21 st century approach to trade and investment 12 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, Vietnam Hope to expand to include additional Asia-Pacific countries Source: United States Trade Representative

5 The Value of TPP U.S. foreign direct investment flows into and out of party country markets Source: At a Glance. U.S. Business Coalition for TPP Country Inward FDI (into the U.S.) Outward FDI (to country) Australia $55.9 billion billion Brunei N/A N/A Canada billion 319 billion Chile 362 million 34.2 billion Japan 362 million 34.2 billion Malaysia 646 million 13.9 billion Mexico 13.8 billion 91.4 billion New Zealand 1.6 billion 6.7 billion Peru 234 million 7.8 billion Singapore 23.5 billion billion Vietnam 20 million 747 million Existing FTA Partner New FTA Partner

6 The Value of TPP Over 14,000 companies from TPP countries have investments in the United States Representing $600 billion in investments in the U.S. Responsible for 1.5 million jobs in the U.S. Possibility to unlock five new markets and strengthen ties to six Source: A TPP Agreement: An Opportunity for America. Business Roundtable.

7 TPP Draft Chapters on Investment/Financial Services Investment Chapter Investor-State Dispute Settlement (ISDS) Provision Financial Services Chapter Financial Services affected by other chapters E-Commerce Chapter Competition Chapter (State-Owned-Enterprises)

8 Background and Controversy around ISDS U.S. Model Bilateral Investment Treaty (BIT) contains an ISDS provision All U.S. FTAs include ISDS provision (except FTA with Australia) TPP sticking point: sectoral exclusions Ongoing debate on ISDS in Europe surrounding TTIP Opponents object to alleged special rights given to foreign investors

9 The Facts on ISDS Over 3000 Bilateral Investment Treaties (BITs) globally Over 260 Investment Chapters in Free Trade Agreements (FTAs) globally U.S. has 40 BITs in force 17 investment chapters in force U.S. claimants have initiated 123 (or 24%) of all ISDS cases U.S. Government has never lost a case Of 274 concluded cases by the end of 2013: 43% decided in favor of the state 31% decided in favor of the investor 26% settled ICSID (International Centre of Investment Disputes) arbitrations: 36% of cases are settled or discontinued 46% of cases awards partially or fully uphold the investors claims Source: UNCTAD IIA Issue Note, Recent Developments in Investor-State Dispute Settlement (ISDS) 2014

10 The Role / Value of ISDS FDI is of fundamental importance for global economic growth and development. Open, transparent and non-discriminatory investment policies and agreements are essential ISDS is an indispensable part of a fair, efficient investment protection system. With no ISDS: Only state-to-state dispute settlement Reliance on local courts and/or diplomatic channels ISDS depoliticizes investment disputes

11 Next Steps/The Way Forward Conclude TPP this year Standard-setting function vis-à-vis third countries and future agreements Investment Chapter (particularly the ISDS provision) will have an effect on the U.S. negotiations with Europe in TTIP

12 THANK YOU! QUESTIONS? COMMENTS?

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