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Monday, November 8, 2010

the situation of international investment flows worrying

The same day by the United Nations Conference on Trade and Economic Cooperation and Development, the World Trade Organization issued a separate joint called "Group of Twenty trade and investment policy report" mentioned there are three aspects of potential risk requires vigilance .

The first sign of rising protectionist pressures. The main reason is the G20 a lot of members of high unemployment, and imbalances between Member States on the exchange rate tensions arise. If the exchange rate policy as people think, as was used for advantage in international trade, it will bring stability to the trading system at serious risk. For those not caused by the trade and investment policies of economic problems, can not restrict international trade or investment flows to be resolved. In fact, in the circumstances to restrict trade or investment policies will only make efforts to solve these problems more complicated.

The second is to limit or result in distortions of trade and investment policy of gradual accumulation of dangerous on the rise. Since late 2008, the new policy of slowly increasing restrictions on trade, but the total point of view, these policies have been involved in the G20 member countries 1.8 percent of imports. Since the outbreak of the crisis all the restrictive policies implemented so far only about 15% is released. This ratio is too low. G20 Governments need to give priority to removing these restrictive measures. Investment policy, although the overall trend is to continue to liberalization, investment promotion and facilitation, the impact of restrictive measures should not be underestimated.

Third, the response to the crisis and the restrictive measures on the impact of trade and investment, how best to deal with the challenges still exist. These measures of market competition in general, pose a serious threat. National emergency program to exit strategy must be transparent, accountable, and not be used as a specific investors, including foreign investors, direct or indirect discrimination excuse.

It is reported that the two reports should be G 20 summit in Toronto in June 2010 summit with a proposed draft of the latest requirements. Heads of State Summit in Toronto requested UNCTAD, WTO and OECD to continue to monitor trade and investment policies, and commitment to the countries concerned to submit quarterly reports. The three agencies responsible for drafting the summary report the name, the United Nations Conference on Trade and OECD in drafting the report on investment policy and the WTO on trade policy, the drafting of the report has been submitted will be held this week in South Korea G20 summit.

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