1. The G20 Should Initiate a Multilateral Investment Agreement
Anders Åslund
Peterson Institute for International Economics
Think 20, Moscow
December 11, 2012

2. Purpose of G-20
To initiate major projects or policies outside of the agenda of ordinary international organizations

3. Why the G-20 Should Promote a Multilateral Investment Agreement
Foreign Direct Investment is huge and has skyrocketed
FDI has become rather balanced
Lots of international investment treaties show need
WTO is the natural venue

4. Why the G-20 Should Promote a Multilateral Investment Agreement (1)
FDI is huge and has skyrocketed: From $27 billion in 1982 to $2.2 trillion in 2007 = Increased 100 times in 25 years

5. Why the G-20 Should Promote a Multilateral Investment Agreement (2)
FDI has become a rather balanced two-way stream
Multinational corporations (MNCs) belong to both developed and emerging economies

6. Outward FDI:

7. Inward FDI:

8. Why the G-20 Should Promote a Multilateral Investment Agreement (3)
Proven need for standardized international (end 2011):
2,833 bilateral investment treaties (BITs)
331 other international agreement with investment protection (mainly FTAs)

9. Why the G-20 Should Promote a Multilateral Investment Agreement (4)
WTO is the natural venue:
Negotiations in OECD failed in 1998 – too small group and not limited to OECD
Trade and investment are ever more integrated
No competing agency
Was part of Doha Round but dropped out

10. Problems Difficult to agree on conflict resolution
Some countries oppose MIA

11. Possible Solutions
Plurilateral agreement within the WTO leaving opponents out
Leaving conflict resolution rather open
Alternative: Continue to broaden regional investment agreements

12. Conclusions The need for an MIA has never been greater
The obstacles to an MIA have never been smaller
But after 9 years of no discussion a major impetus is needed. The G-20 could provide that, and Russia would be an ideal initiator