Trade and investment
Trade and investment: one of the new trade issues, even though some rudimentary rules on investment formed part of the Havana Charter. The issue is concerned with the relationship between trade and investment as factors in international economic relations and the emergence of investment as a market access issue. Broadly speaking, for a long time trade and investment tended to be regarded as separate policy issues. Today, the two are increasingly regarded as complementing each other. In a situation of declining border protection, investment flows can stimulate new trade patterns and strengthen older ones. In other cases, firms are more or less forced to invest and produce in target markets because high tariffs make importing an unrealistic option. The WTO Singapore Ministerial Conference established in December 1996 a Working Group on the Relationship between Trade and Investment to examine this issue. Exploratory work on trade and investment is continuing under the declaration made by the Doha Ministerial Conference. A decision will be made at the fifth WTO Ministerial Conference in 2003 whether to start negotiations. See also globalization, Multilateral Agreement on Investment and tariff-jumping.
Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf
Web site to visit: http://ctrc.sice.oas.org
Author of the text: W. Goode
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