Presentation on theme: "Prof. Dr. Lawan Thanadsillapakul"— Presentation transcript:
1Prof. Dr. Lawan Thanadsillapakul Investment Liberalisation under FTAs and Some Legal Issues in International LawProf. Dr. Lawan Thanadsillapakul
2Scope of Presentation The Main issues of Market Liberalization Understanding the Meaning of FTAThe substances of the New Model of FTAInvestment Liberalization under the Bilateral Investment TreatyState SovereigntyRestriction over entry and establishmentInvestment ProtectionDefinition of Investment and InvestorExpropriationFund transferDispute Settlement Mechanism
3Ideology Neo-Liberalism/Neo-Classical - Global Market Prof. Dr. LawanThanadsillapakulNeo-Liberalism/Neo-Classical- Global Market- Market function- No state intervention- No frontier- No barrierState and MarketMechanism for balancing State and MarketCompetition Law and Policy, Anti-Trust Law, Anti-Monopoly Law
4Main Issues of Market Liberalization Implementation of the Trade and Investment LiberalizationEconomic Theory – Neo Classical – Neo LiberalizationProblematic Issues– Market Failure – Policy FailureEconomic Instruments for Trade and Investment LiberalizationRule – Based Market EconomyPower – Based Market EconomyCapacity Building and the enhancement of competitivenessLevelled Playing FieldUnequal PlayersInequity of the Rule of the gameSWOT Analysis
5Understanding the meaning of FTA FTA = Free Trade Area andFTA = Free Trade AgreementProblematic Issues– The content and context of Free Trade AgreementThe New Model of Free Trade Agreement: Investment LiberalizationThe Differences between Bilateral Investment Agreement and Investment Chapter under Free Trade AgreementThe incorporation of GATT/WTO – Plus requirement into investment chapterThe Market cannot function well under the new FTA modelToo Stringent Intellectual Property Protection such as the prohibition of CLNo clear definition of indirect expropriationThe problem of environment protectionThe Replacement of state barriers by Restrictive Business Practices of TNCs
6Investment liberalization under BITs Prof. Dr. LawanThanadsillapakulMaintain state sovereignty to control FDIAdmission & Right of EstablishmentRestricted areas of investmentRestricted entry and investmentRestricted foreign equity ratio or Limitation on Foreign ownershipScreening processControl on the operation of foreign investorsLimitation on the type and number of foreign personnel and their duration of stayLimitation on ownership of landRequirement that domestic residents be part of board of directors and requirement to implement investment measures
7Legal Impediments Restrictions on investment Restrictions on capital repatriationRestrictions on industrial sectorsRestrictions on bureaucratic proceduresRestrictions on TRIMs – Trade-related investment MeasuresRestrictions on investment protectionRestrictions on Taxation and fees
8The New FTA ModelProf. Dr. Lawanto ensure that foreign companies will be treated as favourably as national of host country and their competitorsto protect FDI from direct and indirect expropriation of investments and ensure that foreign investors will be fairly compensatedto ensure free transfer of funds into and out of the host country using the market rate of exchange .to limit the ability of the host government to require foreign investors to adopt investment measuresto ensure the right of foreign investors to submit an investment dispute with the treaty partner’s government to international arbitrationto give foreign investors the right to engage the top managerial personnel of their choice, regardless of nationalityto ensure the use of labour regardless of nationalityThanadsillapakul
9Legal frameworks governing foreign investment Prof. Dr. LawanThanadsillapakulDomestic Laws and regulationsInternational LawInternational Codes of conduct, GuidelinesTreaty Regime (BITs, Regional Treaty, Multilateral Treaty)WTO Rules and Regulations relating to investmentSpecial regime for investment liberalisationUnilateral liberalization of investment
10Legal frameworks governing FDI at the international sphere Prof. Dr. LawanThanadsillapakulInternational Law- Traditional recognized absolute State sovereign rights- Diplomatic protection- State responsibility- Minimum international standard of treatmentInternational Codes and Guidelines, soft lawThe role of WTO- Multilateral Investment Agreement- General Agreement on Trade related-investment measures (TRIMs)- The General agreement on trade in services (GATs)- General Agreement on Trade-related intellectual property rights (TRIPs)Regional economic integration : EU, NAFTA, ASEAN (regional level)
11Investment Treaty Regime Prof. Dr. LawanThanadsillapakulBilateral Investment TreatyRegional investment treatyMultilateral investment treatyBilateral Free Trade Agreement
12The scope of investment agreement Prof. Dr. LawanThe scope of investment agreementThanadsillapakulThe scope of investment agreements is defined primarily through definitions of key terms, such as “investment” and “investor”.The critical functions of the definition are the identification of assets to which the treaty appliesThe determination of the nature of the obligations created by the treaty
13Coverage of the Treaty/Agreement Prof. Dr. LawanThanadsillapakulTerritorial Coverage- Federal State- Single State- State Parties- Third PartiesPersonal Coverage- Investor: Juristic person, Natural Person
14Coverage of the definition Prof. Dr. LawanCoverage of the definitionThanadsillapakulInvestmentIs the term defined by reference to types of assets that, in theory, could amount to an “investment”?Or does one also refer to the underlying transaction in which those assets are involved?InvestorIs this term defined by reference to categories of legally recognized persons?Or on the basis of the transactions involved, regardless of the legal status of the person or entity undertaking that transaction?
15Definition of Investment Prof. Dr. LawanThanadsillapakulThe broad asset-based definitions of investmentThe narrow asset-based definitionThe enterprise-based and transaction-based definition
16Investment Any kind of asset Movable and immovable property Prof. Dr. LawanThanadsillapakulAny kind of assetMovable and immovable propertyInterest in the companies ( both portfolio and direct investment, but generally portfolio and short term investment would be excluded)Contract rights (service agreement)Intellectual propertyBusiness concessionEach of these types of investment has different economic and development implications for host and home countries
17The Broad Asset-based Definition of Investment Prof. Dr. LawanThanadsillapakulProperty: tangible property, merchandiseProperty rights: mortgage, lien, pledge, company’s interest, debt, equity, debenture, bonds, portfolio investmentContractual rights: professional services, turnkey contract, insurance policy, contract for sale of goods or services, claims to moneyIntellectual property rights: trademarks, trade secret, patent, copyrights, technical process, know-how, good willBusiness concession rights: resources concession
18The Narrow asset-based definition Prof. Dr. LawanThanadsillapakulLimitation to permitted investmentLimitation on time of establishmentLimitation on nature of the investment, i.e. only FDI or indirect investment (port folio)Limitation to size, sector: energy
19The enterprise-based Transaction-based Prof. Dr. LawanThanadsillapakulEstablishment & acquisition of an enterpriseShares of enterpriseTransaction-basedTransaction of establishmentLiquidation of enterprise not asset
20The term “investment” and its interaction with other related issues Prof. Dr. LawanThanadsillapakulInvestment and admission and establishmentInvestment and National Treatment and Most-Favoured-Nation TreatmentInvestment and incentivesInvestment and full protection and securityInvestment and taking of propertyInvestment and funds transferInvestment and dispute settlement
21Definition of Investor Prof. Dr. LawanDefinition of InvestorThanadsillapakulEntities considered investors- Exclusions based on legal form- Exclusions based on purpose- Exclusions based on ownershipEstablishing the link- Natural persons- Legal entitiesNationality of enterprise/legal entity- Seat of the enterprise/company- Incorporation place- Controlling Shareholder
22State’s sovereign Rights Admission & Right of EstablishmentProf. Dr. LawanThanadsillapakulState’s sovereign RightsThe form of Controls or restrictions over the admission and establishment of foreign investorThe acquisition of interests in local businessThe limitations on foreign ownership and controlRegistration and report requirementsThe conditional entry of foreign investors: investment measures, incentive regimes, economic policy
23Sovereign Rights of Host Country to admit and control foreign investment Prof. Dr. LawanThanadsillapakulPre entryPre-entry treatmentTotal ExclusionExclusion from negative list, sensitive list, closed sectorsScreeningQuantitative restrictionConditional entryRestricted allocationEtc.Post entryPost- entry TreatmentForm of establishmentOwnership controlGovernmental interventionSpecial requirementsOther RestrictionsControl over the operation of MNEsExpropriation/ NationalizationEtc.
24Measures relating to admission and establishment Prof. Dr. LawanThanadsillapakulControl over access to the host country economyConditional entry into the host country economyControl over ownershipControls based on limitation of shareholder powersControl based on governmental intervention in the running of the investmentOther types of restrictionMeasures relating to ownership and control
25Control over access to the host country economy Prof. Dr. LawanThanadsillapakulAbsolute ban on all forms of FDI: Former centrally – planned economies prior to the transitional process.Closing certain sectors, industries or activities to FDI for economic, strategic or other public policy reasons.Quantitative restrictions on the number of foreign companies admitted in specific sectors, industries or activities for economic, strategic or other public policy reasons.Investment must take a certain legal form: incorporation in accordance with local company law requirements.Compulsory joint ventures either with state participation or with local private investors.
26Control over access to the host country economy Prof. Dr. LawanThanadsillapakulGeneral screening/authorization of all investment proposals; screening of designated industries or activities, screening based on foreign ownership and control limits in local companies.Restrictions on certain forms of entry: mergers and acquisitions may not be allowed, or must meet certain additional requirements.Investment not allowed in certain zones or regions within a country.Admission to privatization bids restricted, or conditional on additional guarantees, for foreign investors.Exchange control requirements.
27Conditional entry into host country: General conditions Prof. Dr. LawanThanadsillapakulConditional entry upon investment meeting certain development or other criteria (environmental responsibility, benefit to national economy) based on outcome of screening evaluation proceduresInvestors required to comply with requirements related to national security, policy, customs, public morals as conditions of entry.
28Condition based on capital requirement Prof. Dr. LawanThanadsillapakulMinimum capital requirements.Subsequent additional investment or reinvestment requirementsRestrictions on import of capital goods needed to set up investment ( e.g. machinery, software) possibly combined with local sourcing requirements.Investors required to deposit certain guarantees ( e.g. for financial institutions)
29Prof. Dr. LawanOther ConditionsThanadsillapakulSpecial requirements for non-equity forms of investment (e.g. BOT agreement, licensing of foreign technology).Investors to obtain licenses required by activity or industry specific regulationsAdmission fees ( taxes) and incorporation fees (taxes)Other performance requirements ( e. g. local content rules, employment quotas, export requirements).
30Measures relating to ownership and control: Control over ownership Prof. Dr. LawanThanadsillapakulRestrictions on foreign ownership : no more than 50% foreign-owned capital allowed.Mandatory transfers of ownership to local firms usually over a period of time ( fade-out requirements).Nationality restrictions on the ownership of the company or shares thereof
31Control based on limitation of shareholder powers Prof. Dr. LawanThanadsillapakulRestriction on the type of shares or bonds held by foreign investors e.g. shares with non-voting rightRestrictions on the free transfer of shares or other propriety rights over the company held by foreign investors e.g. shares cannot be transferred without permission.Restrictions on foreign shareholder rights e.g. on payment of dividends, reimbursement of capital upon liquidation, on voting rights, denial of information disclosure on certain aspects of the running of the investment.
32Controls based on governmental intervention in the running of the investment Prof. Dr. LawanThanadsillapakulGovernment reserves the right to appoint one or more members of the broad of directors.Restriction on the nationality of directors, or limitations on the number of expatriates in top managerial positionsGovernment reserves the rights to veto certain decisions, or requires that important board decisions be unanimous“Golden” shares to be held by the host Government allowing it, for example, to intervene if the foreign investor captures more than a certain percentage of the investmentGovernment must be consulted before adopting certain decisions.
33Host Country’s General post-entry Control over FDI Prof. Dr. LawanThanadsillapakulControl over Capital movementsControl through tax legislationControl through disclosure legislationControl through “merger” legislationControl over operations resulting in divestmentDispute SettlementExpropriation- Traditional concept- Creeping expropriation
34Related issues to Host’s country control Prof. Dr. LawanThanadsillapakulDefinition of investment : the limitation of power of the host country to control or to allow greater discretion to the host state to control FDIExceptions and derogations: national security, public health, public policy, specific industriesIncentivesNational treatment and most favoured-nation treatmentSocial responsibilityTransparencyDispute settlement
35Other types of restriction Prof. Dr. LawanThanadsillapakulManagement restrictions on foreign- controlled monopolies or upon privatization of public companies.Restrictions on land or immovable property ownership and transfers thereof.Restrictions on industrial or intellectual property ownership or insufficient ownership protection.Restriction on the use of long-term (five years or more) foreign loans e.g. bond
36Country Approaches to entry and establishment of FDI Prof. Dr. LawanThanadsillapakulThe “Investment Control” model, which preserves full State Control over entry and establishment;The “Selective Liberalization” model, which offers limited rights of entry and establishment, i.e. only in industries that are included in a “positive list” by the agreement of the contracting States;The “Regional industrialization programme” model, which offers full rights of entry and establishment based on national treatment for investors from member countries of a regional economic integration organization only for the purposes of furthering such a programme
37Country Approaches to entry and establishment of FDI Prof. Dr. LawanThanadsillapakulThe “Mutual national treatment” model, which offers full rights of entry and establishment based on national treatment for all natural and legal persons engaged in crossed-border business activity from member countries of a regional economic integration organization;The “Combined national treatment/most-favoured-nation treatment” (NT/MFN) model, which offers full rights of entry and establishment based on the better of NT or MFN, subject only to reserved “negative” lists of industries to which such rights do not apply.
38Transfer of Funds Conditional fund transfer Free/Liberal fund transfer Prof. Dr. LawanTransfer of FundsThanadsillapakulConditional fund transfer- Balance of Payment- Financial Crisis- Short term Capital controlFree/Liberal fund transfer
39Returns The earnings from investment Prof. Dr. LawanThanadsillapakulThe earnings from investmentThe elements of the term returns mirror the element of the term investmentTo identify the extent of covered return to be protected under the treatyInvestmentReturns-Shares- Dividends-Debt- Interest payment- Intellectual Property- Royalties-Service contract
40Commodity – Based Input TRIMs Prof. Dr. LawanThanadsillapakulLocal content requirementLaws of similarMinimum export requirementTrade – balancing requirementLimitation on importForeign- exchange restriction
41Factor – Based Input TRIMs Prof. Dr. LawanFactor – Based Input TRIMsThanadsillapakulLocal content requirementLocal - equity requirementTechnology transfer requirementResearch & Development requirementNational participation in managementLocal hiring targetExpatriate quota
42Commodity – Based Output TRIMs Prof. Dr. LawanThanadsillapakulMinimum – export requirementTrade balance requirementExport controlMarket reserve policyProduct mandating requirementLicensing requirementExport performance requirementDomestic sales requirementManufacturing LimitationManufacturing requirement
43Factor – Based Output TRIMs Prof. Dr. LawanFactor – Based Output TRIMsThanadsillapakulTechnology transfer requirementEarning Remittance Limits
44Treatment to foreign investor Prof. Dr. LawanTreatment to foreign investorThanadsillapakulPre-establishmentPost-establishment
45National TreatmentProf. Dr. LawanThanadsillapakulThe nature and origins of the national treatment standardScope and applicationThe substantive content of the national treatment standardThe relationship between national treatment and other general standards of treatment“De jure” and “de facto” treatmentExceptions to national treatment
46DefinitionProf. Dr. LawanThanadsillapakulNational treatment can be defined as a principle whereby a host country extends to foreign investors treatment that is at least as favourable as the treatment that it accords to national investors in like circumstances.In this way the national treatment standard seeks to ensure a degree of competitive equality between national and foreign investors.
47The nature and origins of the NT standard under International Law Prof. Dr. LawanThanadsillapakulThe standard represents one of the competing international law doctrines for the treatment of the person and property of aliens “The Calvo Doctrine” or the so called “Negative National Treatment”The doctrine of State Responsibility for injuries to aliens and their property. It asserts that customary international law establishes a minimum international standard of treatment to which aliens are entitled, allowing for treatment more favourable than that accorded to nationals where this fails below the international standard
48General application of NT Prof. Dr. LawanGeneral application of NTThanadsillapakulNational treatment typically extends to the post-entry treatment of foreign investors.Some international investment agreements also extend the standard to pre-entry situations. (US and Canada BITs)Normally such an extension accompanied by a “negative list” of excepted areas of investment activity to which NT does not apply, or a “positive list” of areas of investment activity to which NT is granted.Several types of general exceptions to national treatment exist concerning public health, safety and morals, and national security.
49National Treatment VS MFN Treatment Prof. Dr. LawanThanadsillapakulNational treatment seeks to grant treatment comparable to domestic investors operating in the host country. (to secure a certain level of treatment for FDI in host country)NT serves to eliminate distortions in competition and thus is seen to enhance the efficient operation of the economies involvedMFN seeks to grant foreign investors treatment comparable to other foreign investors operating in the host country
50The differences of NT that applicable to trade and investment Prof. Dr. LawanThanadsillapakulNational Treatment in trade agreement is applicable to “Product”The national treatment in investment agreement is applicable to “investments” and/ or “investors”
51“De jure” and “De facto” NT Prof. Dr. Lawan“De jure” and “De facto” NTThanadsillapakulDe Jure NT, the treatment of foreign investors based on NT provided under national law and regulation or under the investment treatmentDe facto NT, the treatment of foreign investors under the factual measures that might work against NT e.g. licensing requirements, qualification requirements. Although these measures may be justified on policy grounds.
52Classification of exceptions Prof. Dr. LawanExceptions to National treatmentThanadsillapakulClassification of exceptionsGeneral exceptionsSubject-specific exceptionsIndustry-specific exceptionsReciprocal national treatment clausesExceptions based on development considerations
53Exceptions to national treatment Prof. Dr. LawanExceptions to national treatmentThanadsillapakulGeneral exceptions: public health, order and morals, and national securitySubject-specific exceptions: intellectual property rights guaranteed under IP conventions, taxation, prudential measures in financial services, incentives, safeguards, cultural industries exceptionCountry specific exceptions: specific industries for national economic policy and social policyReciprocal national treatment clausesExceptions based on development considerationsMonitoring
54Most-Favoured-Nation Treatment Prof. Dr. LawanThanadsillapakulMost-Favoured-Nation TreatmentDefinition and scopeMFN treatment and equality of competitive opportunitiesThe “free rider” issueThe identity issueExceptions: general exceptions, reciprocal subject-specific exceptions, country-specific exceptions
55The rationale behind the application of MFN to foreign investors Prof. Dr. LawanThanadsillapakulThe most-favoured-nation treatment (MFN) standard is a core element of international investment agreements. It means that a host country treats investors from one foreign country no less favourably than investors from any other foreign country in like cases.The MFN standard gives investors a guarantee against certain forms of discrimination by host countries, and it is crucial for the establishment of equality of competitive opportunities between investors from different foreign countries.
56Expropriation Direct expropriation Prof. Dr. LawanExpropriationThanadsillapakulDirect expropriationIndirect expropriation /Creeping expropriation- Taxation- Disguised Environmental Measures- Di-vestment- Conditional fund transfer- Legal Enforcement- etc
57Intellectual property Rights Prof. Dr. LawanIntellectual property RightsThanadsillapakulEx.- Berne Convention- Rome Convention- TRIPs Art. 4 (6) (protection of reciprocity Rule)- NAFTA Art (5) (not limited to protection of reciprocity but applies to IP rights in general
58Abuse of intellectual property rights Prof. Dr. LawanAbuse of intellectualproperty rightsThanadsillapakulAbuse of intellectual property rights (IPR), for example where technology-licensing arrangements abuse the monopoly position of IPR holders, such as through non-competition clauses and the so-called ‘grant back’. This means the licensee is required to assign inventions made in the course of working on the transferred technology back to the licensor. Another aspect of IPR abuse, “non-contestation clauses” is that the licensee is prevented from contesting the validity of the IPR or other right of the licensor. IPR abuses might be subject to general competition rules on horizontal and vertical restraints.
59Dispute Settlement State – State Dispute settlement Prof. Dr. LawanDispute SettlementThanadsillapakulState – State Dispute settlementState – Investor Dispute settlement
60Dispute Settlement Judicial System Arbitration Prof. Dr. Lawan ThanadsillapakulJudicial SystemArbitration
61Prof. Dr. LawanThanadsillapakulInvestment Promotion
62Investment Incentives Prof. Dr. LawanInvestment IncentivesThanadsillapakulTax IncentivesNon – Tax Incentives
63Tax Incentives Prof. Dr. Lawan Thanadsillapakul An inducement offered in the form of an abatement of taxes such as:Tax holiday from corporate income taxExemption from income tax, custom duty, corporate tax, Business levy, withholding tax on remittance of profit, dividends and other distributionTax holiday from dividends taxTax allowanceConcession from duty/levyAbatement of adjusted incomeDouble deductionTax creditDeduction for labour costDeduction cost of constructionCapital Loss Carry forwardLoss write-off provisionAny kind of tax exemption
64Prof. Dr. LawanNon – Tax IncentivesThanadsillapakulThe incentives offered by the government to induce trade and investment either from abroad or domestic, or both sources. But they are not in a form of tax abatement such as:One-stop servicesFavourable trade and investment environmentGood Public infrastructureTelecommunication NetworkFavourable legal frameworkInvestment Subsidy
65Competitiveness Capital Technology Management Consumption Behavior Prof. Dr. LawanCompetitivenessThanadsillapakulCapitalTechnologyManagementConsumption BehaviorGlobal network, Global chain
66Anti-competitive business practices Prof. Dr. LawanAnti-competitive business practicesThanadsillapakulHorizontal restraintsVertical restraintsAbuse of intellectual property rightsAbuse of market dominanceMergers and acquisition policiesPublic undertakings and enterprises with special privileges
67Horizontal restraints Prof. Dr. LawanHorizontal restraintsThanadsillapakulHorizontal restraints or the hard-core cartels among firms in an oligopolistic market, engaging, for example,in price fixing,output restrictions,market division,customer allocation, andcollusive tendering andother anti-competitive co-operation between firms selling competing products.
68Prof. Dr. LawanVertical restraintsThanadsillapakulVertical restraints or distribution strategies between manufacturers, suppliers or distributors, such as:tying the sale of one good as a condition for the purchase of another good;exclusive dealing (the seller requires the buyer to purchase the products only from the seller);
69Prof. Dr. LawanVertical restraintsThanadsillapakulterritorial restraints (the seller requires the buyer/distributor to resell the product within a limited geographical area);and resale price maintenance (the seller requires the buyer to resell the product only at a specified price).Resale price-fixing also tends to be generally prohibited. The pro- and anti- competitive effects of such vertical restraints need to be evaluated and where necessary controlled.
70Abuse of intellectual property rights Prof. Dr. LawanThanadsillapakulAbuse of intellectual property rights (IPR), for example where technology-licensing arrangements abuse the monopoly position of IPR holders, such as through non-competition clauses and the so-called ‘grant back’. This means the licensee is required to assign inventions made in the course of working on the transferred technology back to the licensor. Another aspect of IPR abuse, “non-contestation clauses” is that the licensee is prevented from contesting the validity of the IPR or other right of the licensor. IPR abuses might be subject to general competition rules on horizontal and vertical restraints.
71Abuse of market dominance Prof. Dr. LawanAbuse of market dominanceThanadsillapakulAbuse of market dominance: dominant firms accounting for a significant market share may attempt to monopolise a market, for instance through price discrimination,predatory low prices,refusal to deal, orvertical restraints.Rules against the abuse of a dominant position may be conduct-oriented, in other words, a general prohibition against monopolising and foreclosure of competition. Another approach is result-oriented, with a prohibition for example of predatory pricing only if the losses can be recouped.
72Mergers and acquisition policies Prof. Dr. LawanThanadsillapakulMergers and acquisition policiesMergers and acquisition policies, where horizontal, vertical or conglomerate mergers, may reduce competition or decrease efficiency. Merger policies may be designed to ensure the contestability of markets by preventing monopoly or price-setting by a single seller and price-taking by a single buyer, as well as oligopolistic or monopolised market power. On the other hand, acquisition policies also overlap with industrial policy instruments.
73Public undertakings and enterprises with special privileges Prof. Dr. LawanPublic undertakings and enterprises with special privilegesThanadsillapakulPublic undertakings and enterprises with special privileges, which are not required to behave according to market principles, (GATT Article XVII and EC Treaty Article 90) in view of their market power or financial independence. This includes firms with exclusive trading rights and monopolies.
74The Impacts of FTA on state sovereignty Prof. Dr. LawanThanadsillapakulThe impact on LegislationThe impact on Judicial SystemThe impact on the Enforcement of Law and RegulationsThe impact on Administrative SystemThe impact on Territorial JurisdictionThe impact on Personal Jurisdiction
75Fundamental impact of FTA on Environment Prof. Dr. LawanThanadsillapakulSovereign RightsLegal EnforcementOver exploitation
76Negative impacts of FTA Prof. Dr. LawanNegative impacts of FTAThanadsillapakulAgriculture: the instability of the international price of agricultural commodities, Lower agriculture returns are linked to poverty, a major cause of environmental degradationEnergy: to mitigate climate change , over-exploitationFisheries: over-exploitation and illegal, unreported and unregulated fishing.Forestry: the mitigation of global warming and the conservation of biological diversity, illegally harvested forest products, the illegal exploitation of forestry resources, illegal logging
77The areas need careful liberalization Intellectual Property Rights ProtectionInternational Investment rulesTrade – related investment MeasuresThe Treatment of Foreign InvestorsThe liberalization of Trade in servicesMutual Recognition
78The sustainable development To balance State sovereignty and MarketTo balance Liberalization and the conservation of natural resources and environmentTo generate wealth of the local peopleTo evenly distribute income throughout the country and the worldTo maintain cultural way of life and local wisdom
79Environment protection: Development –Related Issues and sustainable development Eco-SystemClimate Change, Ozone Layer, Air Pollution Control, Noise Abatement, Water Protection and water management, Waste and Waste Management, Soil Protection, Chemicals and Environment RisksPreservation of Natural ResourcesBio Diversity, Gene Technology and Environmental RisksSocial and Economic environmentRegulatory EnvironmentWarning System for environment problem, production process, sustainable consumption and the effective environment Measures