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1. INTRODUCTION Proposals made within the international trading community over the past decade to formulate multilateral rules on trade and investment, essentially focusing on the liberalization and protection of foreign direct investment (FDI), have resulted in a lively debate on the linkage between trade, investment flows, and economic development. The origins of this debate can be traced back to the period after the Second World War when initial attempts were made to establish an International Trade Organization (ITO) as part of a United Nations mandate. During the years preceding the launching of the Uruguay Round of multilateral trade negotiations in September 1986, not much headway was made on formulating multilateral rules on trade and investment under the General Agreement on Tariffs and Trade (GATT). The impetus for concluding the debate and formulating a multilaterally binding set of laws received a fillip from the success of the international community in establishing the World Trade Organization (WTO) in 1995, which contained a limited set of provisions relating to trade, investment flows and development. The complexity of the issue, however, as revealed during the deliberations of a Working Group on Trade and Investment established by the WTO in 1996, appears to
Journal of World Investment and Trade – Brill
Published: Jan 1, 2001
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