Focus on quality investments. Ivan Ermokhin, expert Russia-OECD Center Sofia Lebedeva, expert Russia-OECD Center

Similar documents
Investment Policy Liberalization and Cooperation in ASEAN: Thailand s View

Third Revised Decision of the Council concerning National Treatment

INTELLECTUAL PROPERTY RIGHTS IN BILATERAL AND REGIONAL TRADE AGREEMENTS

Trade in Value-Added (TiVA) project

Thailand and TPP 30 November 2012 Apiradi Tantraporn, Executive Chairperson The International Institute for Asia Pacific Studies (INSAPS), Bangkok

SHARE IN OUR FUTURE AN ADVENTURE IN EMPLOYEE STOCK OWNERSHIP DEBBI MARCUS, UNILEVER

EQUITY REPORTING & WITHHOLDING. Updated May 2016

OECD Report to G7 Leaders on Responsible Business Conduct

APA & MAP COUNTRY GUIDE 2017 CANADA

a closer look GLOBAL TAX WEEKLY ISSUE 249 AUGUST 17, 2017

Guide to Treatment of Withholding Tax Rates. January 2018

STOXX EMERGING MARKETS INDICES. UNDERSTANDA RULES-BA EMERGING MARK TRANSPARENT SIMPLE

Reforming the IIA System: Investment Arbitration in Asia-Pacific and ASEAN

Dutch tax treaty overview Q3, 2012

APA & MAP COUNTRY GUIDE 2018 UKRAINE. New paths ahead for international tax controversy

Global Tax Reset Transfer Pricing Documentation Summary. February 2018

Event 1. Module 2. The Converging Strands Between Trade and Investment Session Two: The mega regionals, impacts for members and non-members

CREDIT INSURANCE. To ensure peace, you must be prepared for war. CREDIT INSURANCE FUNDAMENTAL SOLUTION IN CREDIT RISK MANAGEMENT

Argentina Bahamas Barbados Bermuda Bolivia Brazil British Virgin Islands Canada Cayman Islands Chile

From: Annual Report on the OECD Guidelines for Multinational Enterprises 2013 Responsible Business Conduct in Action

Why Invest In Emerging Markets? Why Now?

ISO Anti-bribery management system standard

APA & MAP COUNTRY GUIDE 2017 DENMARK

Current Issues in International Tax Policy

15 Popular Q&A regarding Transfer Pricing Documentation (TPD) In brief. WTS strong presence in about 100 countries

Asian Noodle Bowl of International Investment Agreements (IIAs)

Legal integration: the importance of UNCITRAL standards

Index. tax evasion ethics in tax system change in Bureaucracy 3-11 Canada

Ukraine. WTS Global Country TP Guide Last Update: December Legal Basis

Clinical Trials Insurance

STANDARDS ANDTRADE. Eileen Hill Team Leader for Standards International Trade Administration U.S. Department of Commerce

Analysis of Regional Investment Frameworks Worldwide

The Importance of Bilateral Investment Treaties When Structuring Foreign Investments

Total Imports by Volume (Gallons per Country)

Choosing Investment Structure

Total Imports by Volume (Gallons per Country)

Total Imports by Volume (Gallons per Country)

TOWARDS QUALITY FDI: OPPORTUNITIES FOR INVESTMENT CLIMATE REFORMS

Total Imports by Volume (Gallons per Country)

Total Imports by Volume (Gallons per Country)

Total Imports by Volume (Gallons per Country)

Financial wealth of private households worldwide

Total Imports by Volume (Gallons per Country)

The Relative Significance of EPAs in Asia-Pacific

Total Imports by Volume (Gallons per Country)

Singapore Tax Profile

Services Trade: Essential Fuel for U.S. and Global Economic Growth

Why Invest In Emerging Markets? Why Now?

Turning tides. What Indonesia s reconsideration of bilateral investment treaties means for foreign investors

ILLEGALITY IN INVESTMENT ARBITRATION. Sylvia T. Tonova

tariff global business nontariff barriers multinational corporation quota direct foreign investment trade barriers voluntary export restraints

2017 MINISTERIAL COUNCIL STATEMENT "MAKING GLOBALISATION WORK: BETTER LIVES FOR ALL"

High-level Meeting on Policy Measures and Instruments to improve the Investment Climate in the DP Countries. - Introductory Presentation -

INTERNATIONAL CONVENTION ON STANDARDS OF TRAINING, CERTIFICATION AND WATCHKEEPING FOR SEAFARERS (STCW), 1978, AS AMENDED

- 1 - Federal Ministry for Economic Affairs and Energy German National Contact Point for the OECD Guidelines

Overview of FSC-certified forests January January Maps of extend of FSC-certified forest globally and country specific

Brexit and International Arbitration

INTERNATIONAL CONVENTION ON STANDARDS OF TRAINING, CERTIFICATION AND WATCHKEEPING FOR SEAFARERS (STCW), 1978, AS AMENDED

Japan s New Trade Policy in Asia-Pacific

PENTA CLO 2 B.V. (the "Issuer")

COUNTRY COST INDEX JUNE 2013

Positioning Myanmar as an attractive new investment destination in Southeast Asia

Harnessing Globalisation to Build a Better World for the Benefit of All. Yose Rizal Damuri Centre for Strategic and International Studies

THE ICSID CASELOAD STATISTICS (ISSUE )

Strategies for Successful Business in Asia Fasico is proud to be a partner of

Taking Stock: Coverage

Total Imports by Volume (Gallons per Country)

FY2016 RESULTS. 1 February 2016 to 31 January Inditex continues to roll out its global, fully integrated store and online model.

TRENDS AND MARKERS Signatories to the United Nations Convention against Transnational Organised Crime

Summary 715 SUMMARY. Minimum Legal Fee Schedule. Loser Pays Statute. Prohibition Against Legal Advertising / Soliciting of Pro bono

ANNEX 2: Methodology and data of the Starting a Foreign Investment indicators

Click here to advance to the next slide.

Sourcing Outlook for the Fashion Industry. Julia K. Hughes USFIA Washington Trade Symposium July 30, 2015

Private Equity and Institutional Investors: Risks and Opportunities in Cambodia and Lao PDR IPBA, Manila March 2018

Canada Jumps on the Bilateral Bandwagon

Division on Investment and Enterprise

(including the degree of openness to foreign capital) (3) Importance as a source of energy and/or mineral resources (4) Governance capacity of the gov

Charting Mexico s Economy

Dutch tax treaty overview Q4, 2013

Brown Advisory Somerset Emerging Markets Fund Class/Ticker: Institutional Shares / BAFQX Investor Shares / BIAQX Advisor Shares / BAQAX

Cross-Border Tax Regimes. Steven Sieker Partner, Baker McKenzie 28 June 2018

KPMG s Individual Income Tax and Social Security Rate Survey 2009 TAX

Cross Border Investments (inc. M&A) through Singapore

Request to accept inclusive insurance P6L or EASY Pauschal

Global Consumer Confidence

FTSE Global Equity Index Series

SANGAM GLOBAL PHARMACEUTICAL & REGULATORY CONSULTANCY

YUM! Brands, Inc. Historical Financial Summary. Second Quarter, 2017

Instruction Deadline. *Settlement Cycle

Save up to 74% on U.S. postage.

Double Tax Treaties. Necessity of Declaration on Tax Beneficial Ownership In case of capital gains tax. DTA Country Withholding Tax Rates (%)

Ralentissement dans les BRIC: faut-il s en inquiéter?

Total Imports by Volume (Gallons per Country)

Overview of the Gemloc Initiative Gemloc Roundtable Conference and Workshop

Setting up in Denmark

HEALTH WEALTH CAREER 2017 WORLDWIDE BENEFIT & EMPLOYMENT GUIDELINES

T. Rowe Price Funds. Supplement to the following summary prospectuses, each as dated below (as supplemented) MARCH 1, 2018 MAY 1, 2018 JULY 1, 2018

asea global reach is asea s official program for expansion and development in targeted international markets.

Japanese Policy Response to the Dynamic Growth in Asia. January 17-18, 2011 Keisuke SADAMORI, METI

Pascal Kerneis Managing Director ESF (European Services Forum)

Transcription:

Focus on quality investments Ivan Ermokhin, expert Russia-OECD Center Sofia Lebedeva, expert Russia-OECD Center team@oecd-russia.org +7-916-932-60-81

Investment treaty practice: overview ASEAN Country BIT with Russia? Indonesia In force, since 2009 Malaysia No agreement the Philippines In force, since 1998 Singapore In force, since 2012 Thailand Brunei Signed (not in force) No agreement Cambodia In force, since 2016 Laos In force, since 2006 Myanmar Vietnam No agreement In force, since 1996 (also EEU-Vietnam FTA since 2016) Russia has 82 investment agreements (BIT) most of the Russian BIT s are old and have vague language Last developments in investment treaty practice show us the shift from the quantity of investments to the quality. The quality of investments can be encouraged by the detailed wording of the agreement, that improve the transparency, decrease administrative burden and stimulate sustainable investments.

How to make a better environment for investments? 1 2 Increase the transparency of the national legislation Obligation for governments of BIT to publish the drafts of the national legislation Obligation for governments of BIT to have public discussion about legislative initiatives with investors Make available current regulations at internet and keep them up to date, preferably in English Use links to international agreements that help establish transparency framework, for example Aarhus Convention 1998 Develop investment facilitation mechanisms Obligation for governments of BIT to create contact centers for investors Give the right to foreign investors apply to business ombudsman for help Metalcad v. Mexica 1997, the act of indirect expropriation by Mexica, based on company s violation of local government legislation ASEAN China FTA 2009 has the article that requires from governments to establish contact centers. These contact centers must response to any questions from legal entities and persons about investment regulations

How to make a better environment for investments? 3 Choose the spheres for closer cooperation Countries make statements that they will increase cooperation in chosen spheres. Increase cooperation means harmonization of national regulations based on international standards The areas for closer cooperation can be chosen based on inf. about economic cooperation, necessity to fight counterfeit products etc. Singapore v. Costa Rica 2010 has the list of spheres for closer cooperation 4 Promote responsible business conduct Singapore v. Costa Rica 2010, TPP Agreement, CETA etc promote responsible business conduct through OECD instruments

Responsible Business Conduct (RBC) International Standard 11 Directions RBC Implemented by OECD countries Implemented by emerging economies: China, India, Viet Nam, RSA Implemented by non-oecd countries (Non-member Adherents to OECD Declaration on International Investment and Multinational Enterprises (Argentina, Brazil, Chile, Colombia, Costa Rica, Egypt, Estonia, Hungary, Israel, Jordan, Kazakhstan, Latvia, Lithuania, Morocco, Peru, Romania, Slovenia, Tunisia, Ukraine)) Concepts and Principles General Policies Disclosure Human Rights Employment and Industrial Relations Environment Combating Bribery, Bribe Solicitation and Extortion Consumer Interests Science and Technology Competition Taxation Entails compliance with laws, even if they are poorly fixed at the national level Influence Tool Promotes the enforcement of relevant norms at the national level Implemented by MNEs and SMEs

Why RBC is important for investment 75% of MNEs investment fall under RBC requirements The issues of RBC can be taken into account at different stages of interaction between the state and a foreign investor: conclusion of an investment agreement between the public and private parties obtaining permits Reporting dispute resolution The RBC provisions as a special formulation are included in BITs separately from special provisions on ecology, labor, corruption, since, in essence, they are addressed to private individuals. In 2015 20% of 2500 companies surveyed around the world were fined for violations in the field of legislation on environmental and social issues. More than 40 countries have adopted or are developing action plans for RBC development!! Countries are using RBC for trade restriction

We are not OECD members, why do we need RBC? China is not OECD-member, but in 2015 the Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains was adopted (developed jointly with the OECD) The Guidelines are designed to align Chinese company due diligence with international standards and allow for mutual recognition with existing international initiatives and legislations. The Guidelines will apply to all Chinese companies which are extracting and/or using mineral resources and their related products and are engaged at any point in the supply chain of minerals. Companies using or engaged in the supply chain of other natural resources are also encouraged to use the Guidelines as a reference. IMPORTANT: in 2016 export of mineral substances from Russia to China - 14,825,455,000 USD, 13% of Russian mineral exports (ITC Trade Map)

Responsible business opportunities for investment Renewable energy sources (RES) responsible investments in connection with their environmental friendliness RES in figures: 2015-19.3% of world energy consumption 2016-9.8 million jobs worldwide (an increase of 1.1% compared to 2015) More than 60% of jobs - in Asia (leader - China) 2016, new capacities: solar 47%, wind power 34%, hydropower 15.5% 2016, global investment in RES: $ 241.6 billion 176 countries have set targets for transition to renewable energy sources Perspective Market CHINA 2015 - $ 102.9 billion in RES (36% of global investments) - the largest investor INDIA 2015 - $ 10.2 billion (2nd place in Asia, 5 in the world) ASEAN The goal is to increase the share of RES in the total primary energy reserves to 23% by 2025 Perspective market!

Thank you! Ivan Ermokhin, expert Russia-OECD Center Sofia Lebedeva, expert Russia-OECD Center team@oecd-russia.org +7-916-932-60-81