Comparing EU free trade agreements: Investment
The aim of this InBrief series is to provide a synthesis of various chapters of the ten free trade agreements (FTAs) recently concluded by the European Union with developing countries, as well as other relevant trade agreements when appropriate. Each InBrief offers a detailed and schematic overview of a specific set of trade and trade-related provisions in these agreements. International investment flows are a vital part of the global economy. In developed and developing countries alike, foreign direct investment (FDI) can be a key element for economic growth by stimulating employment, wage levels and the transfer of knowledge. There is a growing consensus that there is a close link between international trade and FDI. Though they can be substitutes for each other, trade and FDI are often complementary means by which businesses can service foreign markets. It is therefore not surprising that investment issues are gaining in importance within international trade negotiations. More broadly, private investment decisions are affected by a broad range of institutional factors, some of which may be addressed in investment agreements.