Appendix 3 - APEC non-binding investment principles, Jakarta, November 1994
In the spirit of APEC's underlying approach of open
Recognising the importance of investment to economic
development, the stimulation of growth, the creation of jobs and the flow of
technology in the Asia-Pacific region,
Emphasising the importance of promoting domestic
environments that are conducive to attracting foreign investment, such as
stable growth with low inflation, adequate infrastructure, adequately developed
human resources, and protection of intellectual property rights,
Reflecting that most APEC economies are both sources and
recipients of foreign investment,
Aiming to increase investment, including investment in small
and medium enterprises, and to develop supporting industries,
Acknowledging the diversity in the level and pace of
development of member economies as may be reflected in their investment
regimes, and committed to ongoing efforts towards the improvement and further
liberalisation of their investment regimes,
Without prejudice to applicable bilateral and multilateral
treaties and other international instruments,
Recognising the importance of fully implementing the Uruguay
Round TRIMs Agreement,
APEC members aspire to the following non-binding principles:
- Member economies will make all laws, regulations, administrative
guidelines and policies pertaining to investment in their economies publicly
available in a prompt, transparent and readily accessible manner.
Non-discrimination between source economies
- Member economies will extend to investors from any economy
treatment in relation to the establishment, expansion and operation of their
investments that is no less favourable than that accorded to investors from any
other economy in like situations, without prejudice to relevant international
obligations and principles.
- With exceptions as provided for in domestic laws, regulations and
policies, member economies will accord to foreign investors in relation to the
establishment, expansion, operation and protection of their investments,
treatment no less favourable than that accorded in like situations to domestic
- Member economies will not relax health, safety, and environmental
regulations as an incentive to encourage foreign investment.
- Member economies will minimise the use of performance
requirements that distort or limit expansion of trade and investment.
Expropriation and compensation
- Member economies will not expropriate foreign investments or take
measures that have a similar effect, except for a public purpose and on a
non-discriminatory basis, in accordance with the laws of each economy and
principles of international law and against the prompt payment of adequate and
Repatriation and convertibility
- Member economies will further liberalise towards the goal of the
free and prompt transfer of funds related to foreign investment, such as
profits, dividends, royalties, loan payments and liquidations, in freely
Settlement of disputes
- Member economies accept that disputes arising in connection with
a foreign investment will be settled promptly through consultations and
negotiations between the parties to the dispute or, failing this, through
procedures for arbitration in accordance with members' international
commitments or through other arbitration procedures acceptable to both parties.
Entry and sojourn of personnel
- Member economies will permit the temporary entry and sojourn of
key foreign technical and managerial personnel for the purpose of
engaging in activities connected with foreign investment, subject to relevant
laws and regulations.
Avoidance of double taxation
- Member economies will endeavour to avoid double taxation related
to foreign investment.
- Acceptance of foreign investment is facilitated when foreign
investors abide by the host economy's laws, regulations, administrative
guidelines and policies, just as domestic investors should.
Removal of barriers to capital exports
- Member economies accept that regulatory and institutional
barriers to the outflow of investment will be minimised.
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