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The rich industrialized countries are insisting that the World Trade Organization (WTO) not only launches a new round of world trade negotiations, but that rules restricted to trade issues now be extended to protect foreign direct investment. Developing countries would consequently be unable to protect their own business sectors and determine their own policies towards foreign capital. The authors explain the North's determination to give privileged protection to overseas investments by their transnational corporations. In particular, they focus on the WTO's General Agreement on Trade in Services (GATS) and Agreement on Trade-related Investment Measures (TRIMS). They spell out their consequences for developing countries. They examine whether there is really a case for a new multilateral framework on investment within the WTO and propose various options for developing countries in resisting what amounts to a new form of Western protectionism.
Publisher: Zed Books Ltd