Trends in Trade and Investment Promotion Trade Promotion Organizations and Investment Promotion Agencies: are they merging?

PURPOSE This white paper addresses a burning question related to investment promotion and trade promotion synergies: Are Trade Promotion Organizations and Investment Promotion Agencies merging? In order to better understand Investment Promotion Agencies (IPAs) and if their services and goals present similarities with Trade Promotion Organizations (TPOs), this whitepaper identifies the four major roles of IPAs. These are: advocacy within the government, image building, investor servicing or facilitation and investment generation. After understanding the functions and mission of IPAs, this paper recognizes joint investment and trade promotion as a way to rationalize TPOs and IPAs financial resources and maximize foreign direct investment (FDI) and export promotion efforts. Due to these advantages a considerable number of high income level countries are merging TPOs and IPAs. However, it seems that combined investment and trade presents challenges. Some management challenges can be: joining different goals which could lead to bureaucratization and dealing with diverse mentalities coming from TPOs and IPAs.