The Journal of

WORLD INVESTMENT & TRADE

ABSTRACTS 

Norio Komuro: Asean and Preferential Rules of Origin

No discussion of free trade agreements (Ftas) can proceed without addressing preferential rules of origin. The Fta rules of origin set forth criteria that must be met for a good manufactured in an Fta Member State to enjoy a preferential treatment in the importing Member State. In this sense, Fta origin criteria for the granting of preferences are critical to manufacturers established in Fta Member States. This article offers a critical evaluation of the rules of origin regime practiced by the Association of South-East Asian Nations (Asean), while also giving consideration to possible future Fta rules of origin between Asean Members and third countries. In conclusion, key viewpoints for future Asian Ftas are explored. A list of Asian FTAs is presented in an Annex.

Norio Komuro is Professor of Law at Kobe University Law School, Kobe, Japan. He is also the author of Japan’s Patent Law Amendment on Remedies against Patent Infringement, which appeared in The Journal of World Intellectual Property, Vol. 1, No. 2, March 1998.

James Bacchus: Trade and Truth—Advice for Americans from an Advocate for Trade

In the context of the recent election season in the United States, this author presents four “truths about trade” that have been overlooked or even misrepresented at both ends of the political spectrum. In doing so, he offers a positive and balanced view of the multi-faceted role that trade plays in all our lives and that it should play, in particular, in American political understanding.

James Bacchus is Chairman of the Global Trade Practice Group of the international law firm Greenberg Traurig, P.A., Orlando, Florida; Visiting Professor of Law at Vanderbilt University Law School, Nashville, Tennessee; and an Associate Editor of The Journal of World Investment & Trade. He is a former Member of the Congress of the United States, from Florida; and a former Member and Chairman of the Appellate Body of the World Trade Organization.

Mehmet Ögütçü: Investing in the Middle East and North Africa Region to Promote Development and Modernization—An Oecd Initiative in the Making

The Middle East and North Africa (Mena) region has enormous assets, yet they have not been transformed into sustainable development for the region’s fast-growing population. While there is broad agreement about reform as an urgent imperative, Mena governments disagree about priorities and responsibilities. In order to help the region’s economies become more open and attractive to investors, both domestic and foreign, several regional and multilateral initiatives have been launched. The Organisation for Economic Co-operation and Development (Oecd) is launching an Initiative on Governance and Investment for Development for the Mena region. It has two elements: governance and investment. This article offers an in-depth look at the Initiative’s investment strand, which is intended to enhance and support the Oecd countries' long-term engagement and dialogue with the Mena countries, both bilaterally and as a region.

Mehmet Ögütçü is Principal Administrator of the Oecd Global Forum on International Investment and Regional Initiatives, Paris, France. He is also the author of the following articles which have appeared in The Journal of World Investment: New Horizons for International Investment and Sustainable Development, Vol. 3, No. 3, June 2002; and Foreign Direct Investment and Regional Development—How to Enhance the Competitiveness of Regions in Brazil, China, Russia and Turkey, Vol. 4, No. 3, June 2003.

Steffen Hindelang: Bilateral Investment Treaties, Custom and a Healthy Investment Climate—The Question of Whether Bits Influence Customary International Law Revisited

By a careful analysis of the two “traditional” elements of custom—consuetudo and opinio juris—this article demonstrates that legal “hard facts” support the thesis that there is a strong case for a minimum standard of protection in customary international law derived from Bits today. It elaborates which conditions must be met in order to consider a treaty provision contained in a bilateral treaty as giving evidence of or creating a rule of customary law. Finding that the arguments put forward by those who deny an effect of Bits on custom are not convincing, it goes on to show that in a subject area of overlapping sovereignties such as foreign investment, a minimum standard of protection contained in custom, which has also a consolidating effect on the Bit network in regards to interpretation, serves the preservation and improvement of a healthy investment climate as an overarching interest of almost all States.

Steffen Hindelang, Ref. jur. (Marburg); LL.M. (Sheffield), is Research Assistant and Doctorial Candidate at the Eberhard-Karls-University of Tübingen, Germany, Faculty of Law.

Kálmán Kalotay: The Rise of Foreign Direct Investment in the Telecommunications Services of Developing Countries

Since the early 1990s, foreign direct investment has assumed a leading role in the provision of telecommunications services in developing countries. Host countries, having perceived telecommunications services as the backbone of a modern service economy, have deregulated their telecommunications industries and implemented privatization programmes open to foreign investors. Transnational firms, looking for survival in global competition, have responded to that opening up, making telecommunications one of the fastest growing industries worldwide. Foreign direct investment in telecommunications has a robust impact on economic growth. It leads to increased access to, and better quality of, services but often at a cost of some social groups or areas being left off the map of accessibility. These problems require policy intervention. In the near future, foreign direct investment in telecommunications is expected to grow rapidly in many developing countries in which demand for services is unlikely to be met by domestic resources only.

Kálmán Kalotay is Economic Affairs Officer, United Nations Conference on Trade and Development, Geneva, Switzerland. He is also the author of the following articles which have appeared in The Journal of World Investment: The Contribution of Foreign Direct Investment to Transition Revisited, Vol. 2, No. 2, June 2001; Outward Foreign Direct Investment and Governments in Central and Eastern Europe—The Cases of the Russian Federation, Hungary and Slovenia, Vol. 3, No. 2, April 2002; Central and Eastern Europe—Export Platform for Investors? Vol. 3, No. 6, December 2002; and Will Foreign Direct Investment Take Off in the Russian Federation, which appeared in The Journal of World Investment & Trade, Vol. 5, No. 1, February 2004.

Ngila Mwase: The Impact of Globalization and Trade Liberalization on the Lives of the Poor in Sub-Saharan Africa

This article discusses the changing development context in which trade takes place and the impact of both trade and globalization on all segments of society, especially the poor. In doing so, it focuses on issues of particular importance to sub-Saharan Africa. The article discusses some key aspects of globalization, of the multilateral trade negotiation systems dominated by the World Trade Organization and the liberalization of national economies. Among other points, the article highlights the need for developing countries to enhance their capacity to negotiate. It also emphasizes that with such efforts it is possible to make headway on ensuring that globalization and trade liberalization will offer tangible and lasting benefits to the poor.

Ngila Mwase, Ph.D. is Senior Field Economist, United Nations Development Programme, Maputo, Mozambique.