Need for implementation of Multilateral agreement on Investment vis-à-vis Dispute Settlement in WTO

– By Aayushi Singh*

Introduction – Cogs of the same wheel – Trade and FDI

From where do we get the much-assumed co-relation between trade and Foreign Direct Investment (FDI)?  Let us draw from the theory of Grazia Ietto-Gillies who opined that the reason for the growth of FDI and MNCs were rooted in neoclassical economics based on macro-economic principles.[1] These theories were based on the classical theory of trade in which the motive behind the trade was a result of the difference in the costs of production of goods between two countries, focusing on the low cost of production as a motive for a firm’s foreign activity.[2] The relation between trade and FDI flows from this. Analytical work has recently been developed by OECD in order to explore the nature of these links in quantitative terms.[3]

Interview: João Ribeiro, Head, Regional Centre for Asia and the Pacific, United Nations Commission on International Trade Law (UNCITRAL)

Mr. João Ribeiro serves as the Head of Regional Centre for Asia and the Pacific, United Nations Commission on International Trade Law (UNCITRAL), Incheon, Republic of Korea. He leads the Centre’s efforts in providing advice to Governments in Asia-Pacific region on the development of long-term strategies for the promotion of the harmonisation and of the modernisation of international trade law.

The views expressed herein are his own and do not necessarily reflect the views of the United Nations.