ABSTRACT

One of the most contentious issues facing the trading system is the extent to which multilateral rules should cover the entry and operations of foreign affiliates of multinational corporations. The purpose of this chapter is to present some of the many issues and parameters confronting investment negotiators in Geneva. It is illustrative and meant to be informative. If there is a message, it is that investment issues are not new to the trading system. History matters. Hence, what is on the table in the Doha Development Agenda reflects an incremental step from the treatment of foreign investment arising from the Uruguay Round. It is not a binary choice: yes, investment in the WTO; or no investment in the WTO. Rather, the challenges confronting negotiators are the extent to which rules governing investment in the WTO should be deepened and the architecture of an efficient framework with which to deal with investment issues.