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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

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APEC Investment Expert Group Meeting

Update on Global Trends

23 February 2017Nha Trang, Viet Nam

Ms. Elisabeth TuerkChief, 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

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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

Source: ©UNCTAD, GITM.*Estimates

FDI inflows: global and by group of economies, 2005–2016(Billions of US dollars)

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Diverging FDI trends among the regions

Source: ©UNCTAD, GITM.*Estimates

Regional contribution to global FDI flows, 2015–2016(Billions of US dollars)

Developing economies continue to comprise half of the top 10 host

economies

Source: ©UNCTAD, GITM.

Estimated FDI inflows: top 10 host economies, 2016(Billions of US dollars)

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II. Trends in International Investment

Policies

2016 IIA Update: The IIA universe continue to grow: in 2016, 30 new IIAswere concluded; APEC economies were involved in 13 of them

Trends in IIAs signed, 1980-2015

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2016 ISDS Update: Investors continue using ISDS: 2016 saw 62 newknown treaty-based cases (less than in 2015, but higher than the 10 yearaverage)

Source: © UNCTAD, ISDS Navigator

Known ISDS cases, annual and cumulative, 1987-2015

Share of mapped BITs containing a transparency provision (Based on 1’768 mapped BITs, signed between 1986 and 2015)

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 containingentry and sojourn of personnel division(Based on 1’768 mapped BITs, signed between 1986 and 2015)

Source: © UNCTAD, IIA Navigator; Investment Facilitation: A Review of Policy Practices (UNCTAD, 2017)

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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

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UNCTAD’s Investment Policy Framework for Sustainable Development

Source: © UNCTAD, World Investment Report 2016

UNCTAD’s Road Map for IIA Reform

UNCTAD’s Road Map for IIA Reform

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UNCTAD’s Global Action Menu for Investment Facilitation: Content

Available on UNCTAD’s Investment Policy Hubhttp://investmentpolicyhub.unctad.org/

Source: ©UNCTAD

UNCTAD Guidelines for Coherent International Tax and Investment PoliciesFor the relationship between IIAs and DTTs, see box V.5. of WIR 2015

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Source: ©UNCTAD World Investment Report 2015

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THANK

YOU!

UNCTAD Online IIA-relatedDatabases

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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

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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 treaty-based 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/ISDS

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UNCTAD Work on International Tax and Investment Policy Coherence (WIR 2015)

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Foreign affiliate fiscal contribution in developing economies: ~$730 billionGovernment revenues contributed by foreign affiliates of MNEsShare of government revenues, developing countries, 2012

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Source: ©UNCTAD World Investment Report 2015

Some 30% of FDI is routed through offshore hubsNon-OFC inward investment stocks, by type of investorVertical view of the Offshore Investment Matrix (Per cent)

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Source: ©UNCTAD World Investment Report 2015