2017/SOM1/IEG/027 Agenda Item: 6.2 Update on Global Trends - Presentation Purpose: Information Submitted by: UNCTAD First Investment Experts Group Meeting Nha Trang, Viet Nam 23-24 February 2017
APEC Investment Expert Group Meeting Update on Global Trends 23 February 2017 Nha Trang, Viet Nam Ms. Elisabeth Tuerk Chief, International Investment Agreements (IIA) Section, Division on Investment and Enterprise, UNCTAD Outline: Update on Global Trends I. Trends in Foreign Direct Investment (FDI) II. Trends in International Investment Policies International investment agreements (IIAs) Investor-State dispute settlement (ISDS) Investment facilitation policies III. UNCTAD Policy Tools and Information Sources Investment Policy Framework for Sustainable Development (2012, updated 2015) Roadmap for IIA Reform (2015) Global Action Menu for Investment Facilitation (2016) UNCTAD Guidelines for Coherent International Tax and Investment Policies (2015) IIA and ISDS Navigators 1
I. Trends in Foreign Direct Investment (FDI) Global FDI flows fell 13% in 2016, as global economic growth remained weak and world trade volumes posted anemic gains FDI inflows: global and by group of economies, 2005 2016 (Billions of US dollars) Source: UNCTAD, GITM. *Estimates 2
Diverging FDI trends among the regions Regional contribution to global FDI flows, 2015 2016 (Billions of US dollars) Source: UNCTAD, GITM. *Estimates Developing economies continue to comprise half of the top 10 host economies Estimated FDI inflows: top 10 host economies, 2016 (Billions of US dollars) Source: UNCTAD, GITM. 3
II. Trends in International Investment Policies 2016 IIA Update: The IIA universe continue to grow: in 2016, 30 new IIAs were concluded; APEC economies were involved in 13 of them Trends in IIAs signed, 1980-2015 4
2016 ISDS Update: Investors continue using ISDS: 2016 saw 62 new known treaty-based cases (less than in 2015, but higher than the 10 year average) Known ISDS cases, annual and cumulative, 1987-2015 Source: UNCTAD, ISDS Navigator Investment Facilitation: In the majority of existing IIAs, concrete investment facilitation provisions are either absent or weak, except for the following two provisions Share of mapped BITS containing entry and sojourn of personnel division (Based on 1 768 mapped BITs, signed between 1986 and 2015) Share of mapped BITs containing a transparency provision (Based on 1 768 mapped BITs, signed between 1986 and 2015) Source: UNCTAD, IIA Navigator; Investment Facilitation: A Review of Policy Practices (UNCTAD, 2017) 5
2015 Update: More recently, a wider range of facilitation-related clauses have made their way into modern investment treaty making The chart shows some of the recently signed IIAs mapped against the 10 action lines contained in UNCTAD s Global Action Menu for Investment Facilitation Source: UNCTAD, IIA Navigator, Investment Facilitation: A Review of Policy Practices (UNCTAD, 2017) III. UNCTAD Policy Tools and Information Sources 6
UNCTAD s Investment Policy Framework for Sustainable Development UNCTAD s Road Map for IIA Reform UNCTAD s Road Map for IIA Reform Source: UNCTAD, World Investment Report 2016 7
UNCTAD s Global Action Menu for Investment Facilitation: Content Source: UNCTAD Available on UNCTAD s Investment Policy Hub http://investmentpolicyhub.unctad.org/ UNCTAD Guidelines for Coherent International Tax and Investment Policies For the relationship between IIAs and DTTs, see box V.5. of WIR 2015 Source: UNCTAD World Investment Report 2015 16 8
THANK YOU! UNCTAD Online IIA-related Databases 9
UNCTAD s online databases: Helping researchers and policymakers in keeping informed of the developments in an ever-evolving IIA regime The IIA Navigator The world s most comprehensive free IIA database, with over 3.300 investment treaties and model agreements Allows for advanced searches of IIAs by type, geography, status and full text Provides analysis on the latest policy developments http://investmentpolicyhub.unctad.org/iia UNCTAD s online databases: Helping researchers and policymakers in keeping informed of the developments in an ever-evolving IIA regime (cont d) The IIA Mapping Project A collaborative initiative between UNCTAD and universities worldwide to map the content of IIAs Over 1.900 IIAs have been mapped to-date, for over 100 features each Serves as a tool to understand trends in IIA drafting, assess the prevalence of different policy approaches and identify treaty examples http://investmentpolicyhub.unctad.org/iia /mappedcontent#iiainnermenu 10
UNCTAD s online databases: Helping researchers and policymakers in keeping informed of the developments in an ever-growing universe of ISDS cases The ISDS Navigator A comprehensive and regularly updated collection of treatybased international arbitrations between investors and States Contains essential information about each ISDS case Offers user-friendly tools to search and filter the data http://investmentpolicyhub.unctad.org/isd S UNCTAD Work on International Tax and Investment Policy Coherence (WIR 2015) 22 11
Foreign affiliate fiscal contribution in developing economies: ~$730 billion Government revenues contributed by foreign affiliates of MNEs Share of government revenues, developing countries, 2012 Source: UNCTAD World Investment Report 2015 23 Some 30% of FDI is routed through offshore hubs Non-OFC inward investment stocks, by type of investor Vertical view of the Offshore Investment Matrix (Per cent) Source: UNCTAD World Investment Report 2015 24 12