New York, N.Y., November 10, 2014 – Foreign direct investment (FDI) is a prime motor of the global economy, boosting job growth and incomes in both home and host countries. What’s more, policy makers increasingly identify FDI as a critical element in financing and delivering innovative solutions to shared global challenges, such as climate change and sustainable development.
In many ongoing trade and investment negotiations as well as other global forums, however, sensible policies to promote cross-border investment are increasingly under broad, politicized attack. To help set the record straight, the United States Council for International Business (USCIB) has issued new “Policy Pillars on Foreign Direct Investment.”
“The time is right for a refresher course on the benefits of FDI,” stated USCIB President and CEO Peter Robinson. “Our members share a fundamental belief in the importance of cross-border trade and investment as engines of growth and human betterment. Yet many fundamental tools to boost FDI are poorly understood or under assault.”
The nine-point USCIB paper, developed under the auspices of the Council’s Trade and Investment committee, presents essential lessons and reminders to policy makers, including:
- Clear, well-implemented government policies, and strong investment agreements, are essential to attract and retain high-quality FDI.
- Bilateral investment treaties must protect investments, open up host economies for foreign investment and provide effective rules to settle investment disputes.
- State-owned enterprises present a range of challenges to home and host countries in crafting effective FDI policies.
- Governments should provide effective support for both inbound and outbound FDI.
- National security concerns surrounding specific investments must be dealt with in a clear, limited and non-discriminatory manner.
“Governments and the international community must take positive steps in order to promote and secure high-quality FDI,” said Robinson. “It is increasingly apparent that, in the 21st century, investment is a crucial component not just for the competitiveness of companies, or even of national economies, but for our global society as a whole as we confront a wide range of shared challenges.”
Release of the USCIB Policy Pillars follows participation by Robinson and Shaun Donnelly, USCIB’s vice president for investment policy, in last month’s UNCTAD World Investment Forum in Geneva, as well as a well-attended USCIB/OECD conference last week in Washington, D.C. on new directions in trade and investment policies. It also comes as USCIB is actively presenting the views of business in the UN climate change negotiations and the ongoing elaboration of new UN Sustainable Development Goals.
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.
Jonathan Huneke, USCIB
+1 212.703.5043, firstname.lastname@example.org