International agreements and fora

The recent financial crises has emphasised the global interdependence and the need for international cooperation. At an international level through organisations and fora, such as WTO, OECD, G20, G8, the EU is committed to promoting a level playing field for investments, based on the highest standards of open and sustainable investment.

The Pittsburgh Summit of G20 leaders in September 2009 said that:

"We will not retreat into financial protectionism, particularly measures that constrain worldwide capital flows, especially to developing countries."

The EU is working with its international partners to make this commitment a reality. 

WTO

The WTO General Agreement on Trade in Services (GATS) commits member governments to undertake negotiations on specific issues and to enter into successive rounds of negotiations to progressively liberalize trade in services.  The GATS addresses foreign investment in services as one of four modes of supply of services (through Mode 3 of the GATS – service provision through establishment of the service provider). 

The EU's open investment regime seeks to integrate investment liberalisation and investment protection. The EU has constantly pursued its market access objectives for investment in trade negotiations with third countries since the creation of the WTO. The EU is committed to a successful outcome in the World Trade Organisation (WTO) for the Doha Development Round.

Read more:

• WTO official website

OECD

The EU is equally committed to the work of the Investment Committee of the Organisation for Economic Co-operation and Development (OECD) in fighting protectionism, agreeing to common standards wherever possible and improving mutual understanding. The OECD has been working with the WTO and United Nations Conference on Trade and Development (UNCTAD) to monitor investment measures taken by G20 members during the financial crisis and its aftermath, in addition to its own monitoring under the OECD Freedom of Investment process.

The Freedom of Investment (FOI) process is carried out by the Investment Committee in the OECD (The OECD Investment Committee deals with issues relating to international investment treaties and the OECD member countries’ obligations under the National Treatment Instrument, as well as under the Codes on Capital Movement and Invisible Transactions). The work of the Investment Committee is designed to maintain and expand an open and transparent policy framework for investment, through its FOI process, as well as to promote responsible business conduct, through an update of the Guidelines for Multinational Enterprises. Both streams of the Investment Committee work have great potential to contribute to strategic OECD projects related to a green growth and development agenda.

The Sovereign Wealth Funds (SWFs) are invited to attend the annual Freedom of Investment Roundtable as observers or full participants if they wish. The purpose is to offer SWFs a platform for discussion to air their concerns to recipient countries and to participate in the exchange of views during the peer monitoring process. The European Commission participates actively to ensure that this process is effective in keeping markets open to investments both within Europe and worldwide.

During the FOI process, a tour d'horizon takes place which includes exchanges on recent investment policy developments. The FOI process keeps track of investment policy developments and provides an opportunity for Roundtable participants to monitor express views and make recommendations on recent investment policy developments.

The Commission takes part in these discussions and is committed to the process.

Read more:

• OECD official website

G20

The G20 has emerged as an important world forum for fiscal and economic issues. Confronting the global financial crisis in 2008, the G20 was seen as crucial player for coordinating efforts with the goal to mitigate the effects of the crisis and to steer the world economy towards recovery.

The G20 has committed itself to fight against protectionism, to keep markets open and free and to refrain from raising barriers to investment or to trade in goods and services and to rectify such measures as they arise

The EU is a Member of the G20 and both through the presence of its institutions and four Member States (FR, DE, IT, UK), is one of the driving forces in G20 on the reform of the global financial system and the wider issues as well.

Read more:

• EU External Action website: The EU and the G20
• European Commission – Economic and Financial Affairs

G8

The G8 addresses a wide range of international affairs, trying to find a common ground on key topics, such as peace and security, international development and health. Fiscal and economic issues are also discussed by G8. However, this is done more within the framework of sustainable development, leaving the leading role in the world's fiscal and economic cooperation to the G20.

The EU participates in the G8 and is represented by the President of the European Council and the President of the European Commission. The EU, both through the presence of its institutions and four Member States (FR, DE, IT, UK), is one of the driving forces in the G8.

Read more:

• EU External Action website: The EU's Relations with G7/G8
• European Commission – Economic and Financial Affairs