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.