Russia is doing all it can to speed up its entry into the WTO, an organization whose main mission is to encourage free trade in the world. In the meantime, a process opposite to world integration is developing at an accelerated pace - the leading economies are closing their doors to foreign investment.
On September 19, the European Commission is going to publish a document limiting investment from third countries to the European energy sector (only recently the EU talked about its forthcoming liberalization). Some provisions of the drafted document are already known. Thus, the European Commission suggests a number of measures against attempts by foreign companies to acquire gas and electricity distribution networks in the EU.
These measures may include more rigid procedures for permits to get energy assets in the EU or even a ban on the acquisition of energy infrastructure for non-EU members. Moreover, the EU has started talking about a principle of reciprocity in energy investments. In other words, only those countries which open their energy markets for the EU, will be allowed to buy its energy assets. This concept is glaringly at variance with the EU's own laws on competition.
It is clear that these measures will be primarily directed against Russian energy companies, which have huge markets in the EU and are interested in buying its distribution networks.
But the EU is going to limit not only Russian investments and not only in energy. Europe is afraid of big investment funds with government stock from China and other newly-rich Third World countries, which are striving to invest in the EU economies. Germany, for example, is going to change its laws to block problematic foreign investment which threatens national interests. Last June, the United States adopted a law which allows it to prohibit any deal with a foreign investor if it prejudices national security. America is particularly cautious about direct Arab investment.
But why have the Europeans and Americans become so concerned about foreign investment now? The reason is obvious - Russia, China and the Gulf countries do not want to their huge foreign trade proceeds to stay idle in gold and currency; they are trying to invest them at an advantage in companies in industrialized countries. But the latter do not want foreign investment. When the developing economies were a unilateral target of Western investment, the world's leading counties stood for an open doors policy. But as soon as there appeared signs of a reverse process, Europe and the United States have immediately recalled the need to pursue national interests and keep strategic heights in the global economy.
For their part, emerging economies are no longer ready to swallow all Western investments without discrimination. The Russian government, for example, has made it clear that it intends to reserve the leading role in the energy sector for the domestic companies. In late August, China, which has made an economic leap largely because of its complete openness to foreign investment, has introduced anti-monopoly legislation to restrict it.
The world has made a full circle. A free global investment market is not here yet. Everyone wants to invest money abroad, barring foreign investment at home.
The opinions expressed in this article are the author's and do not necessarily represent those of RIA Novosti.
