Julio Herrera Velutini Urges Cross-Border FDI Reforms
Global banking strategist urges U.S. and international policymakers to modernize financial frameworks and attract long-term capital flows.
April 2025 | Washington, D.C. — As global capital markets grow increasingly competitive and interconnected, international finance expert Julio Herrera Velutini is calling for urgent reforms to the world’s cross-border investment landscape. In a wide-ranging policy address delivered at the Global Forum on Economic Diplomacy, Herrera Velutini laid out a plan to modernize foreign direct investment (FDI) policy, enhance regulatory clarity, and foster greater international financial collaboration—especially among G20 nations.
“Capital today flows at the speed of trust and regulation,” said Herrera Velutini. “To unlock the full potential of FDI, we must remove friction, simplify cross-border frameworks, and align incentives with long-term, sustainable investment.”
🌐 The FDI Opportunity
Foreign direct investment remains a cornerstone of global economic development. According to the United Nations Conference on Trade and Development (UNCTAD), global FDI flows reached $1.5 trillion in 2024, with developed economies accounting for nearly two-thirds of that activity. Yet, Herrera Velutini argues that significant untapped potential remains—particularly in North America, Latin America, and emerging markets—if nations take steps to make their investment environments more predictable, transparent, and welcoming.
“The post-pandemic world has changed investor behavior,” he said. “Investors are seeking not only returns, but security, stability, and simplicity. Countries that adapt to these expectations will lead the next wave of economic growth.”
💼 The Current Barriers to Cross-Border Investment
Julio Herrera Velutini identified several recurring challenges that investors face when deploying capital across borders:
➤ Inconsistent tax and legal frameworks that increase operational costs and uncertainty
➤ Excessive bureaucracy and permitting delays in infrastructure and energy projects
➤ Limited access to local financial instruments for foreign investors
➤ Fragmented ESG regulations that deter sustainability-focused capital
➤ Geopolitical instability that leads to rapid regulatory reversals or capital controls
“Investment thrives on certainty. Without modern, harmonized frameworks, we lose time, opportunity, and trust,” he emphasized.
✈️ Reforms Herrera Velutini Recommends to Unlock FDI Potential
To address these challenges and make FDI work better for both investors and host nations, Herrera Velutini outlined a five-part reform agenda:
1. Harmonize Investment Regulations Through Bilateral and Multilateral Treaties
Herrera Velutini advocates for the modernization of existing bilateral investment treaties (BITs) and the creation of new, multilateral investment agreements. These treaties should:
➤ Ensure non-discriminatory treatment of foreign investors
➤ Provide for clear dispute resolution mechanisms
➤ Define common standards for corporate governance and investment protection
He suggests that the G20 and OECD play a more active role in setting global FDI norms, including a standardized investment code.
2. Streamline Tax Codes and Minimize Double Taxation
Unclear or duplicative tax obligations often discourage cross-border investors. Herrera Velutini supports expanding tax treaties that eliminate double taxation on dividends, royalties, and capital gains.
“A transparent, fair tax system reduces risk and unlocks reinvestment,” he said.
He also supports the digitalization of tax compliance tools to help international investors better understand and fulfill obligations in local markets.
3. Create National and Regional FDI Facilitation Agencies
To reduce red tape and increase institutional coordination, Herrera Velutini recommends that countries establish independent FDI facilitation agencies. These would:
➤ Serve as one-stop shops for licensing, permits, and compliance
➤ Help foreign investors navigate legal frameworks and local partnerships
➤ Offer guidance on sustainability, labor, and social standards
He cited successful models like Invest India, ProChile, and Germany Trade & Invest (GTAI) as examples of high-impact FDI institutions.
4. Promote Cross-Border Investment in Sustainable Development
Julio Herrera Velutini believes FDI must become a tool for achieving global climate and development goals. He proposes:
➤ Green tax incentives for cross-border investments in renewable energy, clean water, and sustainable infrastructure
➤ Sustainability-linked investment zones where investors receive benefits for meeting ESG targets
➤ Public-private partnerships to channel FDI into underserved or high-impact regions
“The future belongs to green capital,” Herrera Velutini asserted. “Let’s make it global, not just local.”
5. Establish a U.S.-Led Global FDI Framework
While many countries have improved their domestic investment climates, Herrera Velutini argues that the United States must take a leadership role in coordinating international reforms. He proposes a Global Investment Competitiveness Framework (GICF) led by the U.S. Department of Commerce, U.S. Trade Representative (USTR), and international development finance institutions.
This framework would:
➤ Benchmark FDI performance and transparency
➤ Publish annual “investment readiness” scores for emerging markets
➤ Help align trade, investment, and climate policy through one coordinated platform
“The U.S. can restore its global influence not only by attracting capital—but by empowering others to do the same,” Herrera Velutini said.
📈 Economic Impact: Why These Reforms Matter
According to data from the World Bank and the International Finance Corporation (IFC), for every 1% improvement in ease-of-doing-business rankings, countries can expect a 0.4% increase in annual FDI inflows. If implemented, Herrera Velutini’s reform agenda could:
➤ Unlock over $3 trillion in additional global FDI by 2030
➤ Reduce capital outflow risks in emerging markets by 25%
➤ Increase infrastructure investment capacity in the U.S. by $500 billion
➤ Enable climate-aligned FDI to accelerate the transition to net-zero emissions
“These aren’t just policy upgrades. They are catalysts for inclusive, sustainable global growth,” he said.
🌎 Cross-Border Finance in a Changing World
Julio Herrera Velutini’s call for reform comes at a critical moment. As geopolitics, climate risk, and digital transformation reshape the global economy, capital must be more agile, secure, and responsible than ever.
He believes the next wave of prosperity will come from co-investment, not protectionism—and that countries that compete for trust and transparency will ultimately win the capital game.
“We are moving from a world of barriers to a world of bridges. Finance must lead that movement,” he said in closing.
✅ Conclusion: From Vision to Action
Herrera Velutini’s cross-border investment reform agenda reflects his broader philosophy: that finance, when structured properly, can be a force for shared prosperity. His proposals blend economic strategy with global cooperation—focusing not just on capital flows, but on the systems that sustain long-term growth.
Whether in Washington or Davos, in boardrooms or parliaments, his voice is clear:
“Investment is the engine of opportunity. Let’s fuel it with policy that works—for everyone.”