WTO and EIB Sign Landmark Agreement to Boost Trade and Investment

The World Trade Organization (WTO) Secretariat and the European Investment Bank (EIB) Group have formalised a partnership by signing a Memorandum of Understanding (MoU) to enhance sustainable trade and investment globally. 

The agreement was signed during the EIB Group Forum from 3 to 5 March. This marks the start of a collaboration aimed at using the EIB’s financial resources and investment tools to enhance regulatory conditions, attract investment, and create more opportunities for developing countries.

Ngozi Okonjo-Iweala, WTO Director-General, said, “The new EIB-WTO partnership represents an important step toward mobilising finance and strengthening the investment environment in developing countries. 

“At a time when global foreign direct investment flows are lower than we need them to be, the Investment Facilitation for Development Agreement offers participating Members a practical framework to reduce risk, enhance transparency, and reinforce regulatory predictability. This partnership aligns policy reform efforts with catalytic financing, and thus promises to unlock private investment in strategic sectors, including critical minerals, digital technologies, and the bioeconomy, beginning with a pilot group of African countries and expanding over time,” he added.

Partnership to facilitate investment and regulatory reform

The MoU was signed by WTO Director-General Ngozi Okonjo-Iweala and EIB Group President Nadia Calviño. A core component of the agreement is the EIB-WTO Trade and Investment Facilitation Initiative, which will focus on strengthening regulatory reforms, investment planning, and project preparation to bolster trade and investment in developing economies.

This initiative expands on the Investment Facilitation for Development Agreement signed by 128 WTO members. 

This creates a global framework to enhance foreign direct investment (FDI) by improving regulatory frameworks.

The WTO and EIB will collaborate to assess the needs of developing countries and develop operational action plans that identify specific reforms necessary to unlock investment potential. 

The EIB will mobilise funding, including blended finance instruments and private capital participation, to support investment projects aligned with these reforms.

EIB Group President Nadia Calviño highlighted Europe’s dedication to a fair and rules-based trading system and stated, “This agreement between the European Investment Bank and the World Trade Organization Secretariat will help turn trade policy dialogue into concrete, high-impact investments. It will help partner countries attract more and better-quality investment, while supporting reform and creating new trading opportunities for EU businesses. At a time when we need them most, it contributes to win-win partnerships based on mutual respect for shared prosperity.”

Focus on Africa and strategic sectors

During the initial pilot phase, the initiative will concentrate on selected African countries and critical sectors aligned with the EIB Global’s priorities. These include the green and digital transitions, health, education and training, sustainable growth, and the creation of decent jobs. The partnership is likely to unlock investment that supports these strategic objectives while fostering inclusive economic development.

The agreement also includes joint research and analysis between the EIB and WTO. They will share insights on global investment and trade trends to guide policy-making and operational decisions, ensuring their cooperation adapts to changing economic conditions.