Working Group on the Relationship between Trade and Investment - Communication from Japan - Definition of "Investment" in the WTO Rules on Investment

World Trade Organization WT/WGTI/W/92 24 October 2000 (00-4395) Working Group on the Relationship between Trade and Investment Original: English Communication from Japan The following communication, dated 11 October 2000, has been received from the Permanent Mission of Japan. _______________ Definition of “Investment” in the WTO Rules on Investment In recent years, as the result of globalization of business activities, the flow of foreign investment has grown at a much faster pace than that of trade. There have been presentations to this Working Group from many Members on the positive effects of foreign direct investment (FDI) to the host country, especially to developing countries, FDI provides a long-term stable capital, creates domestic employment and demand, and transfers technology and management skills. In particular, the stabilizing role of FDI in financially crises because of its long-term nature, as demonstrated in the Asian financia