USCIB Makes a Case for FDI and Investor Rights at OECD

USCIB members and staff made a compelling case for foreign direct investment FDI) and investor rights last week as part of a roundtable discussion with leadership at the Organization for Economic Cooperation and Development (OECD).

Senior Vice President of International Government Affairs at USCIB member Chubb Yancy Molnar described the contradiction between high demand for FDI today accompanied by a deteriorating environment for investment due to growing anti-business bias around the globe.

“Chubb has never seen such uncertainty,” proclaimed Molnar, which is particularly troubling for insurance, telecommunications and financial services companies, which often have to establish operations in country for prudential reasons. These industries are “heavily regulated and need more protections,” he argued.

Many trends today raise concerns. There is growing pressure to elevate the interests of civil society and sovereign authority in investment agreements and investor state dispute settlement proceedings. There are efforts to reshore supply chains which can translate into an anti-FDI bias.

Moreover, as geo-political frictions rise, nations around the globe are more closely scrutinizing and restricting both inbound and outbound investments through a national security lens. Some USCIB companies face potential expropriation of assets for complying with sanctions regimes in response to Russia’s invasion of Ukraine.

“All are creating a chill on FDI flows,” noted USCIB Senior Advisor Shaun Donnelly.

USCIB Director for Investment, Trade and China Alice Slayton Clark intervened, arguing “governments and international organizations have a critical role, today more than ever, in providing the necessary welcoming environment to encourage foreign direct investment in an uncertain world.” She urged the OECD and nation states to engage more closely with industry to learn about growing barriers to investment and defend a rules-based trade and investment system, particularly the investor state dispute settlement system which safeguards investor rights particularly when investing in riskier markets.

The April 5 roundtable was organized by Business at OECD (BIAC) to connect BIAC members directly with the OECD Investment Committee leadership. OECD Investment Division Head Ana Novik and the OECD Investment Committee Chair Manfred Schekulin attended, as well as leading business representatives from Europe and Japan. USCIB is grateful to Business at OECD for organizing the important engagement.

Staff Contact:   Kira Yevtukhova

Deputy Director, Marketing and Communications
Tel: 202.617.3160

Kira Yevtukhova manages USCIB’s print and online publications, including the website, e-newsletter and quarterly magazine, and serves as the organization’s digital media strategist. Prior to this role, Kira worked for over five years within USCIB’s Policy Department, focusing on climate change, environment, nutrition, health, and chemicals related policy issues. She is a graduate of Mount Holyoke College and has an MBA from Georgetown University’s McDonough School of Business.
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