Investment Experts' Group

Investment is the foundation of economic activity and a necessary prerequisite to innovation, growth of manufacturing and trade.

In 1993, APEC leaders welcomed the report presented by the APEC Eminent Persons Group, which recommended for APEC to “adopt an Asia-Pacific Investment Code to reduce the uncertainties and transaction costs of trade and investment in the region.” Immediately after, leaders instructed the Committee on Trade and Investment (CTI) to develop a set of nonbinding investment principles.

In 1994, the CTI established the Investment Experts’ Group (IEG) to fulfill this task. . The IEG developed the Non-Binding Investment Principles, which were endorsed by APEC leaders in Jakarta in 1994. As a CTI sub-forum, the IEG has worked to enhance liberalization and facilitation of investment, as well as strengthen member economies’ capacity building through economic and technical cooperation.

Bearing in mind the goal of economic development and prosperity of people across the APEC region, the objectives of the IEG are as follows:

• To undertake work related to investment and report its outcomes to the CTI
• To address issues related to investment and to enhance the liberalization and facilitation of investment in the APEC region
• To enhance capacity building in the area of investment through economic and technical cooperation among member economies in the APEC region
• To support investment promotion activities of member economies to facilitate investment flows in the region

Based on these objectives, the IEG reaffirms two principal pillars of its work as follows:

1. International investment regime—principles and practices. This pillar looks at various investment issues and challenges from the perspective of international instruments such as International Investment Agreements (IIAs).
2. Investment promotion, facilitation and retention, such as continuing the work on the Investment Facilitation Action Plan (IFAP), Investment Policy Dialogue (IPD), Investment Promotion Agency (IPA), best practice discussions and other crosscutting issues such as global value chains (GVC), public-private partnerships (PPP) and infrastructure.

APEC Non-Binding Investment Principles (NBIPs)

The APEC Non-Binding Investment Principles (NBIPs) demonstrate APEC’s commitment to promoting investment and addressing challenges posed by a rapidly evolving business environment. The NBIPs, originally endorsed in 1994, were successfully revised in 2011.

Investment Facilitation Action Plan

In 2008, APEC Ministers endorsed an Investment Facilitation Action Plan (IFAP) that is aimed at strengthening the competitiveness and sustainability of economic growth of APEC’s member economies and making further progress towards achievement of the Bogor Goals. The IFAP includes a comprehensive prescription of actions that can be taken across a range of policy areas and has served as a valuable reference tool for the improvement of the APEC investment climate. The IEG has reviewed the action plan’s implementation progress and published five reports in 2013, 2015, 2017, 2019 and 2023.

Last page update: May 2024

Contacts

Current Activities

The Latest IEG Meeting

The IEG held its first meeting (IEG1) for 2024 on 29 February-1 March 2024 in Lima, Peru. IEG1 was physically attended by delegates from 17 member economies and the Organization for Economic Cooperation and Development (OECD) and Economic Research Institute for ASEAN and East Asia (ERIA), with virtual presentations by the World Economic Forum (WEF) and the United Nations Commission on International Trade Law (UNCITRAL).

Host Economy and CTI Priorities

Peru’s theme this year is “Grow, Include, Empower”. Peru’s representative and the CTI chair provided their priorities and current works. CTI chair expected the IEG’ role to promote investments and look after investment liberalization and facilitation in the APEC region.

Implementing the Putrajaya Vision 2040 including through Aotearoa Plan of Action

IEG members discussed new investment issues, especially on Inclusive and Responsible Businesses and Investment (IRBI). Malasia, Peru and OECD shared their activities on IRBI and Responsible Business Conduct (RBC).  Malaysia provided update on two projects, “Realizing Inclusive and Responsible Business & Investment (IRBI) in APEC” (IEG 01 2022T) and “Workshop on Experience in Implementing Inclusive and Responsible Business and Investment (IRBI) and Climate FDI Facilitation” (IEG 01 2023S). Other economies shared new investment trend, including investment issues on biodiversity and circular economy.  IEG will continue the discussions and information sharing and provides inputs on these new investment issues to CTI to facilitate FTAAP agenda from the perspective of investment.

International Investment Regime - Principles and Practices

International organizations and several economies shared their developments and activities, especially on the issue of sustainable investment, including climate issues with investment. Australia and Papua New Guinea updated the progress of the project, “Phase III of the APEC Investment Commitment Handbook Project” (IEG 02 2018S). WEF made a video presentation on digital FDI, FDI on climate issues and WTO Investment Facilitation for Development Agreement. UNCITRAL shared the discussion at Working III on current ISDS reform. Chile provided updates on the project, “International Investment Agreements and Climate Change” (IEG 01 2023). Australia presented their progress on International Investment Agreements (IIAs) and climate change. Chile presented investment chapter of the Advanced Framework Agreement with the EU. IEG members deepened their knowledge on the development and discussions at the international investment regime and IIAs developed by some economies.

Investment Promotion, Facilitation and Retention Issues

On investment promotion and facilitation, Peru presented updates on “Best practices aimed at attracting quality FDI and measuring it to promote sustainable development through the execution of physical infrastructure” (IEG 201 2023). OECD gave updates on their project, “OECD FDI Qualities Review” on attracting quality FDI. Japan introduced their initiative implemented in CTI, “APEC Quality Infrastructure Development and Investment Initiative.” Chinese Taipei also gave update on their project for enhancing sustainable investment, “Capacity Building on How Investment Facilitation Policies can enhance Sustainable Investment” (IEG 02 2022T). Lastly, Japan proposed a new PSU research project on “APEC Companies’ Best Practices on Long-term Foreign Direct Investment.” These project updates contributed to increasing knowledge on attracting quality FDI and sustainable investment.

IFAP

There was a discussion on IFAP that IEG should consider updating IFAP in line with the current APEC goals, i.e. APV 2040 and APA. It will be discussed intersessionally.