A handbook to equip developing countries with options to negotiate and strike investment agreements that promote sustainable development, growth with jobs and improved livelihoods is to be launched on 29 October 2012.
Developed by the Commonwealth Secretariat, the practical handbook, titled “Integrating Sustainable Development into International Investment Agreements: A Guide for Developing Countries,” aims to enable developing Commonwealth countries to navigate the complex web of international investment agreements (IIAs) to be able to design those that support their development needs.
It is expected that the Guide will be of use by developing countries in negotiating bilateral investment treaties, but various provisions may also be suitable for inclusion in economic partnership agreements, investment provisions in preferential trading agreements and other international economic agreements relating to investment.
The launch will take place during the 5th Global Investment Forum in Port of Spain, Trinidad and Tobago on 29 October 2012.
Using the services and insights of very experienced experts in investment agreements drafting, the Commonwealth Secretariat spent over two years scanning the landscape of IIAs to come up with the final product.
“The Guide marks the culmination of an intense and very successful consultative and expert-group process held in the Commonwealth Caribbean, Pacific, South Asian and African regions; identifies an area of crucial need among our poorest, smallest and most vulnerable members; and provides a cost-effective, instructive and very deeply appreciated tool across the Commonwealth’s developing country membership, as members consider how best to integrate investment provisions when negotiating multilateral and other trade and related agreements,” said Dr Cyrus Rustomjee, the Director of Economic Affairs at the Commonwealth Secretariat.
On her part, Ms Veniana Qalo, a trade adviser and acting head of international trade and regional co-operation Section at the Commonwealth who conceptualized and technically managed the project said that some international investment agreements make it difficult for countries to achieve essential public policy objectives, including their development goals and the maintenance of environmental, human rights and labour rights standards.
“We felt it was important to provide our developing Commonwealth members with a one stop shop where they could draw insights from to inform their decision making processes. The Guide serves that purpose,” Ms Qalo said.
Ms Qalo added that the Guide explains how IIAs can increase foreign investment flows into developing countries and addresses how these agreements can support the efforts of host developing countries to regulate foreign investment inflows in order to ensure that they contribute to sustainable development The Guide identifies best practices in the investment agreement arena, providing tips on the costs and benefits of choosing whatever option a country decides to take up.
It also discusses new sorts of provisions that are designed to preserve the ability of states to regulate investment in a manner that ensures that foreign investment is harnessed to achieve development objectives without creating strong disincentives to investment.
In addition to suggesting new provisions that may lead to a better bargain for developing countries compared to existing IIAs, the Guide is intended to be directly useful for countries negotiating new IIAs.
