APEC non-binding investment principles

APEC non-binding investment principles

JAKARTA (AFP): The text of non-binding investment principles endorsed by ministers of the Asia-Pacific Economic Cooperation (APEC) forum at their sixth annual meeting in Indonesia:

In the spirit of APEC's underlying approach on open regionalism,

Recognizing the importance of investment to economic development, the stimulation of growth, the creation of jobs and the flow of technology in the Asia-Pacific region,

Emphasizing the importance of promoting domestic environments that are conducive to attracting foreign investment, such as a stable growth with low inflation, adequate infrastructure, adequately developed human resources and protection of intellectual property rights,

Reflecting that most APEC economies are both sources and recipients of foreign investment,

Aiming to increase investment, including investment in small and medium enterprises, and to develop supporting industries, Acknowledging the diversity in the level and pace of development of member economies as may be reflected in their investment regimes, and committed to ongoing efforts towards the improvement and further liberalization of their investment regimes, Without prejudice to applicable bilateral and multilateral treaties and other instruments,

Recognizing the importance of fully implementing the Uruguay Round TRIMs (trade related investment measures) agreement,

APEC members aspire to the following non-binding principles:

TRANSPARENCY: Member economies will make all laws, regulations, administrative guidelines and policies pertaining to investment in their economies publicly available in a prompt, transparent and readily accessible manner.

NON-DISCRIMINATION BETWEEN SOURCE ECONOMIES: Member economies will extend to investors from any economy treatment in relation to the establishment, expansion, operation and protection of their investments, treatment that is no less favorable than that accorded to investors from any other economy in like situations to domestic investors.

NATIONAL TREATMENT: With exceptions as provided for in domestic laws, regulations and policies, member economies will accord to foreign investors in relation to the establishment, expansion, operation and protection of their investments, treatment no less favorable than that accorded in like situations to domestic investors.

INVESTMENT INCENTIVES: Member economies will not relax health, safety, and environmental regulation as an incentive to encourage foreign investment.

PERFORMANCE REQUIREMENTS: Member economies will minimize the use of performance requirements that distort or limit expansion of trade and investment.

EXPROPRIATION AND COMPENSATION: Member economies will not expropriate foreign investments or take measures that have a similar effect, except for a public purpose and on a non- discriminatory basis, in accordance with the laws of each economy and principles of international law, and against the prompt payment of adequate and effective compensation.

REPATRIATION AND CONVERTIBILITY: Member economies will further liberalize towards the goal of free trade and prompt transfer of funds related to foreign investment, such as profits dividends, royalties, loan payments and liquidations, in freely convertible currency.

SETTLEMENT OF DISPUTES: Member economies accept that disputes arising in connection with a foreign investment will be settled promptly through consultations and negotiations between the parties to the dispute or, failing this, through procedures for arbitration in accordance with members' international commitments or through other arbitration procedures acceptable to both parties.

ENTRY AND SOJOURN OF PERSONNEL: Member economies will permit the temporary entry and sojourn of key foreign technical and managerial personnel for the purpose of engaging in activities connected with foreign investment, subject to relevant laws and regulations.

AVOIDANCE OF DOUBLE TAXATION: Member economies will endeavor to avoid double taxation related to foreign investment.

INVESTOR BEHAVIOR: Acceptance of foreign investment is facilitated when foreign investors abide by the host economy's laws, regulations, administrative guidelines and policies, just as domestic investors should.

REMOVAL OF BARRIERS TO CAPITAL EXPORTS: Member economies accept that regulatory and institutional barriers to the outflow of investment will be minimized.