. /.RESTRICTEDWORLD TRADE
ORGANIZATIONWT/GC/W/280
29 July 1999
(99-3217)
General Council Original:  Spanish
PREPARATIONS FOR THE 1999 MINISTERIAL CONFERENCE
Negotiations Relating to a Multilateral Framework for Investment
Paragraph 9(b) of the Geneva Ministerial Declaration
Communication from Costa Rica
The following communications, dated 22 July 1999, has been received from the Permanent
Mission of Costa Rica.
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Costa Rica is submitting this proposal in order that it may be considered by the Members of
the WTO in the context of the process of preparation for the Third Ministerial Conference.
1. Proposal
A multilateral framework for regulating investment should be developed in the next trade
negotiations to be conducted within the WTO.  A multilateral agreement of this kind should be basedon the fundamental principle of non-discrimination so as to guarantee a more predictable and stable
climate for worldwide investment, which would be of benefit both to international investors and to the
host States.  A greater degree of stability and predictability for investors and their investments would
not only encourage investment but would certainly also contribute to the growth and development of
the world economy.
2. Reasons
The WTO is a suitable multilateral forum for th e development of a set of principles which
would govern, broadly and comprehensively, the question of investment.  There are already WTO
agreements which incorporate certain rules and disciplines applicable to investment, such as the
General Agreement on Trade in Services and the Agreement on Trade-Related Investment Measures.
However, a number of questions of great importance developed in other international instruments for
the promotion and protection of investment are not covered by the existing rules.  Moreover, a
multilateral framework for investment established by  the WTO could ensure that the interests and
objectives of both developed and developing countries are taken into account.
The existence of numerous bilateral agreements for the promotion and protection of
investment bears witness to high levels of convergence at world level.  Similarly, it also reflects the
interest of many countries in guaranteeing investors greater stability through the establishment of
clear and transparent rules governing the treatment accorded to foreign investment.  However, this
proliferation of bilateral agreements has helped to create a multiplicity of regimes for the treatment ofWT/GC/W/280
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investment in a world whose economy is becoming increasingly globalized.  This is leading to
uncertainty, a lack of transparency and the overlapping of rules and disciplines.  A multilateral
agreement on investment would eliminate these problems and provide basic guarantees for investment
and the investor, while promoting increased foreign investment and benefiting both the host States
and the net exporters of capital.
Since a multilateral agreement on investment should be based on the principle of
non-discrimination, guarantees of most-favoured-nation treatment and national treatment should be
two of its fundamental features.  The coverage of the agreement and the use of a broad or narrow
concept of investment are factors which also need to be very carefully considered.  Other aspects
which should be developed in an agreement of this kind include:  performance requirements,
investment incentives and dispute settlement.
The development of multilateral investment disciplines should take into consideration the
different interests of all the Members of the WTO and should provide for flexibility with regard to the
level and coverage of the commitments to be assumed.
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