World's first multilateral investment agreement finalized

 A container ship is berthed at Yangshan Port in Shanghai in April. [Photo by Zhu Xingxin/China Daily]

The Investment Facilitation for Development Agreement, as the world's first multilateral investment agreement, will further shore up the confidence of global investors and better safeguard outbound foreign investment made by Chinese firms, according the country's Ministry of Commerce on Friday.

The legal text of the agreement was finalized on Thursday after a group of WTO members have been negotiating the agreement on investment facilitation disciplines since September 2020, the ministry said, adding that China has been playing a proactive role during the negotiation.

The agreement acts as the world's first multilateral investment agreement with special focuses on scaling up the transparency of investment policies, simplifying administrative approval procedures, promoting cross-border investment facilitation and advancing sustainable development, the ministry said.

The agreement will help enhance the stability and predictability of global investment regulatory policies, further boost global investors' confidence and promote stable growth of global investment. Furthermore, it will better safeguard outbound foreign investment made by Chinese enterprises, the ministry said.

When the agreement enters into force, it will become international treaty obligations for the participating economies under the WTO framework. Participants shall ensure that their investment regulatory measures are consistent with the commitments they pledged in the agreement, according to the ministry.

wangkeju@chinadaily.com.cn