RESTRICTED
WORLD TRADE G/TRIMS/M/3
13December 1995
ORGANIZATION(95-4056)
Committee onTrade-Related Investment Measures
MINUTES OFTHE MEETING HELD ON19OCTOBER 1995
Chairman: Mr.Vassili Notis (Greece)
1. TheCommitteeonTrade-RelatedInvestmentMeasureshelditsthirdmeetingon19October1995.
2. TheCommittee adopted thefollowing agenda:
A. Rules ofProcedure
B. NotificationsunderArticle5.1oftheAgreementonTrade-RelatedInvestmentMeasures
C. Format forNotifications under Article 5.5oftheAgreement
D. Notification Procedures under Article 6.2oftheAgreement
E. Brazil -Provisional Measure 1024 of13June1995
F. Annual Report totheCouncil forTrade inGoods
G. Other Business
H. Dates ofNext Meetings
A. RULES OFPROCEDURE
3. TheCommittee hadbefore itindocument G/TRIMS/W/3 proposed rulesofprocedure. The
Committee agreed toadopt these rules andtoforward them totheCouncil forTrade inGoods for
approval inaccordance withparagraph 6ofArticle IVoftheWTO Agreement.
B. NOTIFICATIONS UNDER ARTICLE 5.1OFTHEAGREEMENT ONTRADE-RELATED
INVESTMENT MEASURES
4. TheChairmanrecalledthat,atthemeetingoftheCommitteeheldinJune,commentsofaspecific
ormore general character hadbeenmade onnotifications made under Article 5.1.1Since thatmeeting,
theCommittee hadreceived neworsupplementary notifications fromColombia, Cuba, Cyprus, Egypt,
Honduras, Poland, Switzerland andUruguay. Hedrew attention tohisremarks atthemeeting in
Juneonthenature oftheCommittee 'sdiscussion ofnotifications submitted under Article 5.1.
1G/TRIMS/M/2, paragraphs 8-32G/TRIMS/M/3
Page2
5. Therepresentative ofCuba informed theCommittee that, following theenactment in
September 1995ofanewforeign investment law,thelocalcontent provisions described indocument
G/TRIMS/N/1/CUB/1 werenolonger applicable. Keyfeatures ofthenewinvestment lawincluded
aprovision enabling theauthorization offoreign investment inallsectors oftheeconomy, except in
health care, education anddefence; guarantees forforeign investors inregard toconditions of
expropriation andinregard totransfer ofprofits infreely convertible currency; thepossibility tomake
investments through various forms, including jointventures andwholly foreign-owned enterprises;
andaprovision granting foreign investors therighttoexport andimport directly.2
6. Therepresentatives ofVenezuela, PeruandMexico welcomed therecent developments inthe
Cuban foreign investment regime.
7. Therepresentative ofJapan saidthatseveral Members hadnotyetsubmitted notifications under
Article 5.1.Thiswasinconsistent withtherequirements ofArticle 5.1andheurged thedelegations
concerned toexplain thereasons forthedelay.
8. Therepresentative oftheEuropean Communities saidthat,attheprevious meeting, itwas
noted thatseveral notifications didnotconform totheagreed standard format anddidnotcontain the
required, detailed information. Heregretted thatsome ofthedelegations inquestion hadnotprovided
supplementary information. Inregard tonotifications submitted aftertheexpiry oftherelevant deadline,
hereiterated hisdelegation 'sposition thatMembers which failed tosubmit notifications intimecould
notbenefit from thetransition period inArticle 5.2.
9. Therepresentative ofCanada, referring tocomments made attheprevious meeting, seconded
thepointmade bytherepresentative oftheEuropean Communities regarding theneedforsupplementary
information incaseofsome ofthenotifications made under Article 5.1.
10. Therepresentative ofNewZealand welcomed thestatement inthenotification submitted by
Peru3thatthePeruvian authorities wereexamining thepossibility ofeliminating themixing requirement
applied inthedairy sector andasked whether some information wasavailable ontheoutcome ofthis
examination. Bilateral consultations wereexpected tobeheldbetween PeruandNewZealand toresolve
adifference ofopinion onwhether ornotthisrequirement hadbeentariffied intheUruguay Round.
Inregard toparagraph 8ofthenotification byPeru, heasked thedelegation ofPerutoexplain the
reasons forthespecific ratioofdomestically-produced fresh milkandimported milkpowder.
11. Inrespect ofthenotification submitted byThailand4,therepresentative ofNewZealand noted
thegeneral statement inparagraph 4ofthisnotification thatThailand intended tomaintain theapplication
oftrade-related investment measures during thefive-year transition period provided forinArticle 5.2.
Hisdelegation would appreciate receiving more specific information ontheintentions ofThailand
regarding theelimination orphase-out ofmeasures applied tothedairy products identified inthis
notification. Hisdelegation would seekmore information onabilateral basisonamixing requirement
notified byIndonesia5concerning fresh milkandimported rawmaterial milk.
2Copies ofthenewCuban foreign investment lawareavailable intheSecretariat (Intellectual Property andInvestment
Division).
3G/TRIMS/N/PER/1
4G/TRIMS/N/1/THA/1
5G/TRIMS/N/IDN/1G/TRIMS/M/3
Page3
12. Therepresentative ofUruguay drewtheCommittee 'sattention toasupplementary notification
recently submitted byhisdelegation inaccordance withtheagreed standard format.6
13. Therepresentative ofKorea disagreed withtheview expressed bytherepresentative ofthe
European Communities onthelegalconsequences oflatenotifications. Asstated byhisdelegation
attheprevious meeting, there wasnoclear legal basis todeny thebenefits ofthetransition period
toMembers which submitted notifications aftertheexpiry ofthedeadline provided inArticle 5.1.
14. Therepresentative ofMalaysia recalled that,attheprevious meeting, hisdelegation hadmade
thepointthatthestandardformatfornotificationsunderArticle5.1wasusefultofacilitatethenotification
process butthatcompliance withtheformat wasnotanobligation under theAgreement. Nevertheless,
hisdelegation hadundertaken atthatmeeting toprovide supplementary information inaccordance with
thestandard format; heexpected thatthisinformation would beforthcoming within thenextfewdays.
15. Therepresentative ofPerusaidthathisdelegation would pursue onabilateral basisthepoints
raised byNewZealand. Heemphasized thatPerudidnotutilize themechanism oftariffication, which
wasprecisely thereason whythemixing requirement inthedairy sector hadbeennotified under this
Agreement.
16. TherepresentativeofIndiasharedtheviewsexpressedbythedelegationofKoreaonthequestion
oftheconsequences oflatesubmission ofnotifications. Heinformed theCommittee thathisdelegation
wouldintheverynearfuturesubmitasupplementarynotificationinaccordancewiththestandardformat.
17. Therepresentative ofIndonesia recalled that,attheprevious meeting, hisdelegation had
explained thatthedelay inthesubmission ofhiscountry 'snotification wascaused byproblems created
byuncertainty overwhether aparticular measure wascovered under thisAgreement orunder the
Agreement onSubsidies andCountervailing Measures. Henoted thatmore Members hadsubmitted
notifications afterthedeadline stipulated inArticle 5.1andexpressed hisagreement withtheviewof
theKorean representative thatthere wasnolegal basis todeny Members which hadsubmitted late
notifications thebenefits ofthetransition period under Article 5.2. Heproposed thattheChairman
conduct informal consultations onthismatter. Inregard tothequestion raised bytherepresentative
ofNewZealand, hisdelegation would pursue thismatter bilaterally.
18. Therepresentative oftheUnited States saidthathisdelegation waspleased withtheadditional
andsupplementary notifications which hadbeenreceived since thelastmeeting. Atthesame time,
hisauthorities wereconcerned about theincreasing number oflatenotifications. Inthisrespect, his
delegation agreed withtheEuropean Communities thatMembers which didnotmeetthedeadline laid
down inArticle 5.1didnotbenefit from thetransition period. However, asstated byhisdelegation
attheprevious meeting, thisdidnotmean thatlatenotifications weredevoid ofvalue. Totheextent
thatsuchlatenotifications reflected anunambiguous commitment toeliminate measures within the
relevant period oftime, other Members might wellwishtotakethatcommitment intoaccount when
exercising theirrights.
19. Therepresentative ofThailand saidthatshewould seekinformation from herauthorities on
thequestion raised bytherepresentative ofNew Zealand.
20. Therepresentative oftheEuropean Communities welcomed theannouncement byseveral
delegations atthismeeting thatsupplementary information ontheirnotifications would beprovided.
Inresponse tothestatement bytherepresentative ofKorea, hesaidthatthetextofArticle 5.1was
6G/TRIMS/N/1/URY/1/Add.1G/TRIMS/M/3
Page4
unambiguous ontheissueoftheconsequences oflatenotifications andthattherewastherefore noneed
forinformal consultations onthismatter.
21. TherepresentativesofJapanandtheUnitedStatesagreedwiththerepresentativeoftheEuropean
Communities thatthere wasnoneedforinformal consultations ontheissue oflatenotifications.
22. Therepresentative ofKorea saidthathisdelegation stillfeltthatfurther consultations were
necessary inorder toarrive ataconsensus onthequestion ofwhether Members which hadsubmitted
notifications aftertheexpiry ofthedeadline could benefit from thetransition period inArticle 5.2.
23. TheCommittee tooknoteofthecomments made andagreed torevert tonotifications under
Article 5.1atitsnextmeeting.
C. FORMAT FOR NOTIFICATIONS UNDER ARTICLE 5.5OFTHE AGREEMENT
24. TheChairman recalled that,atitsmeeting inJune, theCommittee haddiscussed aSecretariat
proposal foraformat fornotifications under Article 5.5.7Itwasgenerally agreed thatthisproposal
wasagoodbasisfordeveloping astandard format. TheCommittee haddecided toholdfurther informal
consultations onthisproposed format ifnecessary inlightofspecific drafting proposals bydelegations.
Suchproposalshadnotbeenmade,whichsuggestedthattheproposedformatwasacceptabletoMembers.
TheChairman therefore proposed thattheCommittee adopt thedraftformat proposed intheSecretariat
Non-Paper.
25. Itwassodecided.
26. TheChairmansaidthattheSecretariatwouldcirculatetheadoptedstandardformatasadocument
oftheCommittee.8
D. NOTIFICATIONPROCEDURESUNDERARTICLE6.2OFTHEAGREEMENTONTRADE-
RELATED INVESTMENT MEASURES
27. TheChairman noted that,atitstwoprevious meetings, theCommittee hadconsidered ways
ofgiving effect totherequirement ofArticle 6.2thatMembers notify theSecretariat of"thepublications
inwhich TRIMs maybefound, including those applied byregional andlocalgovernments within their
territories". However, theCommittee 'sdeliberations onthismatter hadnotmade much progress.
Sofar,onlyoneconcrete proposal hadbeenmade. Thisproposal envisaged theidentification of
publications inwhich information oninvestment measures generally could befound. Inviewofthe
importance ofArticle 6.2asameans forensuring transparency, itwasappropriate thattheCommittee
intensify itsefforts tofindasensible wayofimplementing thisprovision. Inlightofaconcern which
might existthatcompliance withArticle 6.2could prove tobeunduly burdensome, itwasuseful to
stress therather limited scope ofthisnotification requirement. Article 6.2required anidentification
ofrelevant publications, which could bedonesimply through alistofnames ofsuchpublications, rather
thantheactual submission ofcopies ofpublications. Moreover, suchalisting ofrelevant publications
would notnecessarily havetobemade onaperiodic basis. Another relevant pointwasthat,assuggested
byonedelegation atthelastmeeting, theCommittee could decide thatMembers would notneedto
identify under Article 6.2lawsandregulations already notified under Article 5.1.
7Secretariat Non-Paper No.1853
8Seedocument G/TRIMS/3G/TRIMS/M/3
Page5
28. Therepresentative oftheUnited States proposed thattheSecretariat prepare aspecific proposal
ontheimplementation ofArticle 6.2toserve asabasis forinformal consultations prior tothenext
meeting oftheCommittee.
29. Itwassodecided.
E. BRAZIL -PROVISIONAL MEASURE 1024 OF13JUNE 1995
30. TheChairman noted thatthissubject appeared ontheagenda ofthismeeting attherequest
ofthedelegation oftheUnited States.
31. Therepresentative oftheUnited States recalled that,on3July1995, Brazil hadnotified
Provisional Measure 1024totheCouncil forTrade inGoods.9TheMeasure applied tomanufacturers
andassembling companies of,interalia,automobiles, trucks, buses, andautomobile parts, andincluded
quantitative restraints andinvestment restraints. Intheanalysis ofhisdelegation, theinvestment-related
provisions oftheProvisional Measure conflicted withtherules oftheAgreement regarding trade-
balancing andlocalcontent requirements. These provisions werenotaddressed intherecent balance-of-
payments consultations andBrazil therefore could notclaim balance-of-payments coverage forthem.
Heasked thedelegation ofBrazil toexplain howtheGovernment ofBrazil intended toensure that
theinvestment-related provisions inProvisional Measure 1024 conformed withBrazil 'sobligations
under theWTO.
32. Therepresentative ofKorea shared theconcerns expressed bythedelegation oftheUnited
States inregard tocompatibility withtheAgreement oftheinvestment-related measures contained in
Provisional Measure 1024. TheCommittee onBalance-of-Payments Restrictions hadrecently found
thatBrazil wasnotfacing aserious balance-of-payments problem. Inthelightofthisfinding, Korea
wondered howBrazil 'sproposed measures could bejustified onthebasisofArticle 4oftheAgreement
andconsidered thattheycould beinviolation oftheillustrative listannexed totheAgreement. His
delegation wasalsoconcerned thattheBrazilian investment measures hadnotbeennotified tothe
Committee onTrade-Related Investment Measures. Korea hadcommended Brazil forthesuccessful
implementation ofitsPlano Real, launched in1993, which included actions tostrengthen fiscal and
monetary policies andwhich hadreduced inflation from approximately 50percentinJune1994 to
lessthan2percentatpresent. Korea alsorecognized, along withother WTO Members, thatBrazil
needed tomaintain anadequate levelofreserves topreserve itscreditworthiness. Inaddition, asa
developing country, Korea understood thefundamental importance oftheautomotive sector tothe
Brazilian economy. Indeed, theperformance ofautomobile production hadadirect impact onalmost
allothersectors ofthenational economy. However, while fullyunderstanding thedesire oftheBrazilian
Government tomaintain acompetitive automotive industry, hisauthorities didnotbelieve thatthe
introduction ofaWTO-inconsistent regime oftrade-related investment measures would bethebest
waytoachieve thisgoal. Heunderstood thatBrazil would decide bytheendofthisyearwhether or
notitwould enforce theannounced measures. Pending thatdecision, thisCommittee should convey
itsconcerns totheBrazilian authorities.
33. Therepresentative ofBrazil saidthathisdelegation recognized therightofeachdelegation
toraiseintheCommittee matters deemed tobeofinterest toWTO Members butfailed toseethereasons
fortheinclusion ontheagenda ofthismeeting ofanitemconcerning Provisional Measure 1024. This
Measure hadbeennotified totheWTO intheinterest oftransparency. Atrecent meetings oftheCouncil
forTrade inGoods, theGeneral Council andtheCommittee onBalance-of-Payments Restrictions,
hisdelegation hadexplained thattheProvisional Measure hadnotentered intoforce andthat,ifand
9WT/L/73G/TRIMS/M/3
Page6
when theMeasure wasapproved bytheBrazilian Congress, theinvestment-related aspects ofthe
Provisional Measure would needtoberegulated bydecree andwould notbecome effective prior to
1996. There wasnoneedtodiscuss intheCommittee alegal framework which hadnotyetbeen
approved andregulated andwhich consequently wasnotyetinforce.
34. TherepresentativeoftheEuropeanCommunitiessaidthathisdelegationrealizedthatProvisional
Measure 1024wasnotyetinforceandthattheMeasure hadbeennotified totheWTO fortransparency
reasons only. Herecalled thatonanother occasion Brazil hadindicated that,ifandwhen theMeasure
weretoenter intoforce, afurther notification would beprovided. Hisdelegation believed thatifthe
Measure weretoenterintoforce, itwould beinconsistent withBrazil 'sobligations under theAgreement.
35. Therepresentative ofCanada stated thatiftheseries ofmeasures contained inProvisional
Measure 1024 were putintoeffect theywould notqualify fornotification under Article 5.1ofthe
Agreement, norwould theyqualify fortreatment under Article 4.
36. TherepresentativeofUruguaysaidthatanydelegationhadtherighttoraisemattersitconsidered
ofinterest buthewasnotconvinced thatdiscussion intheCommittee ofthisparticular subject was
veryuseful.
37. Therepresentative ofJapan asked foraclarification ofthecurrent legalstatus ofProvisional
Measure 1024. Henoted inthisconnection that,while therepresentative ofBrazil hadstated thatthe
Measure wasnotyeteffective, Article 19oftheProvisional Measure stipulated thatitwould become
effective asofthedateofitspublication. AstheMeasure hadbeenpublished, itseemed thatitdid
havesome legalforce.
38. Therepresentative ofBrazil responded thathisdelegation hadonseveral occasions provided
anexplanation oftheprecise legalstatus ofProvisional Measure 1024. Onlythequantitative restraints
contained inthisMeasure hadentered intoforce; inrespect ofother measures theProvisional Measure
merely provided alegalbasis forpossible future action. Herecalled that,attheprevious meeting,
theChairman had,inthecontext ofthediscussion ofnotifications under Article 5.1,stated thatitwas
notthetaskoftheCommittee toundertake acollective evaluation ofthelegalvalidity ofindividual
notifications made under Article 5.1.IftheCommittee wasnottoundertake acollective evaluation
ofthelegal validity ofmeasures thatwere inforce andhadbeennotified, itfollowed logically that
theCommittee could alsonotengage insuchacollective evaluation ofmeasures which hadnoteven
entered intoforce.
39. Therepresentative ofKorea saidthatdiscussion ofthisitemintheCommittee wasappropriate
inlight ofthemandate oftheCommittee which, under Article 7.2,wastoafford Members the
opportunity toconsult onanymatter affecting theoperation andimplementation oftheAgreement.
40. Therepresentative ofBrazil responded thathisdelegation 'sposition wasnotthattheCommittee
could nothaveadiscussion ofProvisional Measure 1024 butthattheCommittee could notengage
inacollective evaluation ofthelegality ofameasure which hadnotyetentered intoforce.
41. Therepresentative ofJapan stated thatifandwhen themeasures contained inProvisional
Measure 1024 entered intoforce, theywould constitute aviolation byBrazil ofitsobligations under
thisAgreement.
42. TheCommittee tooknoteofthestatements made.G/TRIMS/M/3
Page7
F. ANNUAL REPORT TOTHE COUNCIL FOR TRADE INGOODS
43. TheCommittee adopted itsannual report totheCouncil forTrade inGoods.10
G. OTHER BUSINESS
44. TheCommittee provided anopportunity torepresentatives ofintergovernmental organizations
invited toattend thismeeting asobservers tomake statements ontheactivities oftheirorganizations
relevant totheworkoftheCommittee. TheCommittee noted theobjections raised bytherepresentative
ofIndia, whobelieved thataconsideration ofactivities ofother international organizations inthearea
offoreign investment wasoutside thescope oftheCommittee 'smandate.
45. Therepresentative oftheIMFsaidthattheIMF'sresponsibilities werenormally divided into
three main parts: surveillance, technical assistance, andbalance-of-payments support. Aspartofits
surveillance function, theIMFfrequently reviewed various aspects ofcountries 'policies, including
investment incentives, andmade recommendations onthese policies. TheIMFmission chiefs would
certainly useanyinformation which theCommittee could provide, suchasnotifications oftrade-related
investment measures, which could giveamore complete framework fordiscussion inthisarea. Any
feedbackfromtheCommitteeonimplementationoftheAgreementcouldbehelpfulintheseconsultations.
OneofthetasksoftheIMF'sGeneva office wastofollow various Committees attheWTO andtransmit
anyrelevant information from theWTO tostaffatheadquarters working onmember countries. He
trusted thattheCommittee would bevaluable inthisrespect. Thetechnical assistance provided by
theFundalsofrequently involved advice ontaxandinvestment incentives withtheaimofrecommending
country policies toimprove theefficient allocation ofcapital. Inthiscontext, itwasimportant that
theFund'spolicy advice takeintoaccount thecountry 'sinternational obligations intheWTO, which
included theAgreement onTrade-Related Investment Measures anditsimplementation. Issues raised
inthiscontext attheCommittee could provide valuable information andguidance onimplementation
ofthesepolicies atthecountry level. Inrespect oftheIMF'sactivities intheareaofbalance-of-payment
support,theFund-supportedprogrammesandconditionalitymightalsoattimesinvolveinvestment-related
policies suchasthedesign oftaxincentives. However, itwasnottheIMF'sresponsibility toseek
toenforce WTO undertakings through itssupport ofcountries 'reform programmes. Finally, ona
broader level, anydiscussion ofinternational investment issues attheWTO orelsewhere wasofgreat
interest totheIMFwithitslinks toglobal financial flows, macroeconomic stability andexchange
arrangements. Therepresentative oftheIMFconcluded bysaying thattheIMFwasverymuch looking
forward toparticipating inthemeetings oftheCommittee, which waslikely toprovide useful insights
onissues related totheimplementation oftheAgreement andthereby serve asaninput tocoherence
inFund policy advice tomember countries. TheIMF'sGeneva Office would liaise between the
Committee andIMFheadquarters andwasalsoavailable torespond toanyrequests forinformation
theCommittee might haveonareas relevant totheIMF'scompetence.
46. Therepresentative oftheOECD stated thattheOECD hadformany years beenworking in
theinvestment field. Anumber ofinternational agreements, someofwhich werelegally binding, served
asthebasisforpromotion ofliberalization ofinvestment regimes byOECD members. Recently OECD
members hadcome totheconclusion thatthecurrent approach wasnotsufficient andhadlaunched
astudy onthedevelopment ofasingle, comprehensive instrument onforeign investment. Following
thisstudy, OECD members hadformally launched negotiations onaMultilateral Agreement on
Investment inMaythisyear. TheNegotiating Group established toconduct these negotiations had
helditsfirstmeeting inSeptember, atwhich itelected abureau, agreed itsworking procedures and
adopted aprogramme ofwork fortheremainder ofthisyear. Thework programme wasambitious;
10Document G/L/37G/TRIMS/M/3
Page8
mostofthesubjects wereexpected tobediscussed atleastonceintheremainder oftheyearanddraft
textsmight beavailable insome areas bytheendoftheyear. Thenegotiations aimed atanagreement
which would becomprehensive inscope, covering allsectors oftheeconomy under abroad definition
ofinvestmentandwhichwouldprovideforasatisfactorybalanceofcommitmentsamongthesignatories.
Theagreement wasintended tosethighstandards forthetreatment andprotection ofinvestment, going
beyond theexisting commitments intheOECD toachieve ahighstandard ofliberalization covering
boththeestablishment andpost-establishment phase, withbroad obligations onnational treatment, non-
discrimination, standstill, rollback andtransparency andwithnewdisciplines inareasnotsatisfactorily
covered byexisting OECD instruments, including investment incentives andperformance requirements.
Theagreement would belegally binding andbeapplicable toallparties atalllevels ofgovernment
anddealwithmeasurestakeninthecontextofregionaleconomicintegrationorganizations.Animportant
element oftheagreement would beprovisions toencourage conciliation andensure effective dispute
resolution, taking intoaccount existing mechanisms. Account would betaken ofexisting international
commitments, soastoavoid anypossible conflicts withagreements intheWTO (notably TRIPS, GATS
andTRIMs) andwithinternational agreements ontaxation. Theagreement would beconcluded as
afree-standingtreaty,opentoallOECDmembers,theEuropeanCommunitiesandnon-OECDmembers.
Non-OECD members would beconsulted during thenegotiations through avariety ofmechanisms.
Ithadbeendecided togrant theWTO observer status.
47. TherepresentativeofUNCTADsaidthattheUNCTADDivisiononTransnationalCorporations
andInvestment hadbeencreated in1993, when theformer UNCentre onTransnational Corporations
wastransferred from NewYork toGeneva. TheDivision served assecretariat totheCommission
onInternational Investment andTransnational Corporations, which wasthefocalpoint within theUN
system forallmatters relating toforeign direct investment. TheCommission reported totheTrade
andDevelopment Board. Thework oftheCommission overthelasttenyears showed amarked shift
toward amore positive attitude todirect investment andtransnational corporations. Ithadrecently
strengthened itsrolebyagreeing toundertake reviews ofthepolicies ofindividual countries andby
undertaking work oninvestment incentives. Underlying UNCTAD 'sroleintheareaofforeign direct
investmentwasarecognitionoftheimportanceofforeigndirectinvestmentandtransnationalcorporations
tothedevelopment process, asevidenced bythefactthatthevalue ofproduction andsalesofforeign
affiliatesexceededthevalueofworldexports.Thisinternationalizedproductionwasconstantlyincreasing
asforeign direct investment inflows, estimated atapproximately US$230 billion in1995, wereadding
toastock ofmore thanUS$2.4 trillion. Themain activities oftheDivision consisted oftechnical
assistance andresearch andinformation analysis. TheDivision published theannual World Investment
Report, maintained acomprehensive foreign direct investment database andissued ajournal
"Transnational Corporations" which hadrecently begun tocarry articles onquestions relating tothe
international framework forforeign direct investment. Inaddition, theDivision undertook research
studies onspecific aspects offoreign direct investment, suchassmall andmedium-sized enterprises,
trade-related investment measures, services andlegal andpolitical issues related toaninternational
framework forforeign direct investment. Some oftheresults ofthesestudies weredisseminated through
seminars. Onesuchseminar wastotakeplace on24October andwasintended toenhance awareness
offoreign direct investment issues among WTO andUNCTAD delegates based inGeneva. TheDivision
hadalsoundertakentechnicalassistanceactivitiesinresponsetospecificrequestsfromcountriesinterested
inattracting foreign investment. Aspecial areaoftechnical assistance activity wasprivatization, which
hadtobeseeninthebroader context ofUNCTAD 'sactivities onthesubject ofenterprise development
andcompetitiveness. This subject wasanimportant theme fordiscussion attheforthcoming
UNCTAD IXconference. UNCTAD hadundertaken several studies oninvestment-related matters
incooperation withother international organizations, including theOECD andtheWorld Bank and
hadaprogramme ofactivities inthisareawith theprivate sector.
48. Inrespect ofcompetition policy, there wasatradition ofwork inUNCTAD inthisareaas
UNCTAD wasresponsible fortheimplementation oftheUNSetofMultilaterally Agreed EquitableG/TRIMS/M/3
Page9
Principles andRules onRestrictive Business Practices adopted bytheUNGeneral Assembly in1980.
UNCTAD wasnowexamining questions arising intheareaofcompetition policy asaconsequence
oftheglobalization andliberalization oftheworld economy. Thethird UNconference toreview
theimplementation oftheSetwould beheldinNovember thisyearandwasexpected tochartthefuture
direction ofUNCTAD 'swork oncompetition policy.
49. Therepresentative ofBrazil stressed thatthepresentations justmade bytherepresentatives
ofinternational organizations were onlyaimed atproviding useful information forthebenefit ofall
Members anddidnotrequire theCommittee totakeaposition onanymatter.
50. TheCommittee tooknoteofthestatements made.
H. DATES OFNEXT MEETINGS
51. TheCommittee agreed toholditsnextmeetings inMarch andSeptember 1996andtorequest
theSecretariat todecide ontheexact dates forthese meetings.