APEC talks deadlocked on investment
APEC talks deadlocked on investment
JAKARTA (JP): Asia Pacific Economic Cooperation (APEC)
negotiators yesterday failed to reach an agreement on the
formulation of non-binding investment principles and decided to
bring the issue to a committee meeting today.
"We will further discuss the formulation of APEC Non-binding
Investment Principles at a meeting of the Committee on Trade and
Investment tomorrow," a delegate to the closed-door meeting told
The Jakarta Post yesterday.
He said the negotiators could not reach a consensus on
articles concerning the performance requirement, repatriation and
convertibility as well as national treatment.
When the negotiators discussed a proposed article which says:
"Member economies will minimize the use of performance
requirements as a means of achieving policy objectives in
circumstances where they distort or limit expansion of trade and
investment" a Chinese official said there is no definition of
performance requirement.
A U.S. delegate proposed that the word "minimize" should be
changed with "eliminate."
When discussing a proposed article which says: "Member
economies will allow the free and prompt transfer of funds
related to foreign investment, such as profits, dividends,
royalties, loan payments and liquidation, in freely convertible
currency, subject to the laws and regulations applicable in each
economy" the U.S. and Canadian delegates suggested the dropping
of the last phrase -- subject to the laws and regulations
applicable in each economy.
The Indonesian delegate wanted the last phrase to be
maintained.
All the negotiators attending yesterday's meeting agreed that
member economies will not relax health, safety and environment
regulations as an incentive to encourage foreign investment.
The negotiations also agreed that disputes arising in
connection with a foreign investment will be settled promptly
through consultations and negotiations between parties to the
dispute or, if they fail this, through procedures for arbitration
in accordance with members' international commitments or through
other arbitration procedures acceptable to both parties.(riz/dms)