South Korea is initiating discussions for the swift implementation and enforcement of the World Trade Organization (WTO) Investment Facilitation Agreement (IFDA). The aim is to enhance transparency and predictability in investment-related administrative procedures, thereby expanding investments in the services sector and strengthening global supply chains.
The Ministry of Trade, Industry and Energy, in collaboration with the Korea International Trade Association, hosted a session titled 'Strengthening Supply Chains through Investment Facilitation' at the 2026 WTO Public Forum held at the WTO headquarters in Geneva, Switzerland, on September 17. This year's forum, which runs from September 15 to 17, focuses on the future of trade in services.
During the session led by South Korea, participants discussed the importance of investment facilitation for expanding trade in services and strengthening supply chains, as well as the urgent need for the prompt implementation of the IFDA and future challenges. The IFDA is a multilateral agreement aimed at increasing the transparency, predictability, and efficiency of investment-related administrative procedures. Negotiations were finalized during the 13th WTO Ministerial Conference in 2024, with 131 WTO member countries currently participating.
Since 2017, South Korea has co-chaired the negotiations alongside Chile, leading efforts to reach an agreement. In March, South Korea also participated in discussions regarding the incorporation of the agreement into the WTO legal framework during the 14th WTO Ministerial Conference. However, these discussions were stalled due to opposition from India.
In response, the government is taking steps to facilitate the implementation of the IFDA. The session was chaired by Gabriel Marceau, a professor at the University of Geneva, with representatives from the United Nations Conference on Trade and Development (UNCTAD), the International Trade Centre (ITC), and the Consumer Technology Association of the United States addressing the effects of improving the investment environment and the challenges faced by businesses.
Nan Li Collins, Director of Investment at UNCTAD, emphasized that the implementation of the agreement could contribute to improving investment conditions in the services sector. Dorothy Tembo, Deputy Executive Director of ITC, discussed the impact of a friendly and transparent investment environment on attracting investment and growth in developing countries. Ed Brzytwa, Vice President of the Consumer Technology Association, highlighted the regulatory and administrative challenges businesses face during the actual investment process and the importance of a predictable investment environment.
Yoon Chang-hyun, a legal officer at the Ministry of Trade, Industry and Energy, stated, 'The IFDA will play a crucial role in expanding global investment, including in developing countries, through the simplification of investment-related administrative procedures and improvement of the investment environment. It is essential to seek practical and realistic measures for the prompt implementation and enforcement of the IFDA, and South Korea will fulfill its necessary role in this regard.'
* This article has been translated by AI.
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