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)