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Challenges at the intersection between investment provisions in regional trade agreements and implementation of the GloBE Rules under Pillar Two

Author

Listed:
  • Ruth Wamuyu
  • Belisa Ferreira Liotti
  • Jeffrey Owens

Abstract

A number of regional trade agreements (RTAs) include investment protection provisions that may limit a country’s ability to change tax measures. This limitation could raise concerns for States as regards the recently agreed global minimum tax under the Global Anti-Base Erosion (GloBE) Rules, as its implementation could amount to a breach of investment obligations. Therefore, this paper analyses how the GloBE Rules and their impact on investment incentives interact with investment provisions in RTAs, also considering the impact of the minimum tax on regional integration efforts and the potential for a regional approach to its implementation.

Suggested Citation

  • Ruth Wamuyu & Belisa Ferreira Liotti & Jeffrey Owens, . "Challenges at the intersection between investment provisions in regional trade agreements and implementation of the GloBE Rules under Pillar Two," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    • Handle: RePEc:unc:tncjou:100
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    References listed on IDEAS

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    3. Jeffrey Owens & James X. Zhan, . "Introduction to the Special Issue Trade, investment and taxation: policy linkages," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    4. Joachim Pohl, 2018. "Societal benefits and costs of International Investment Agreements: A critical review of aspects and available empirical evidence," OECD Working Papers on International Investment 2018/1, OECD Publishing.
    5. Molly Lesher & Sébastien Miroudot, 2007. "The Economic Impact of Investment Provisions in Regional Trade Agreements," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 62(02), pages 193-232, June.
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