History Of International Investment Agreements

As part of its missions, the United Nations Conference on Trade and Development has published the Sustainable Development Investment Policy Framework (IPFSD), a dynamic document that was created to help governments develop sound investment policies, including international investment agreements, that use foreign direct investment (FDI) for sustainable development. IPFSD intends to promote a new generation of investment agreements by pursuing a broader development agenda; and policy makers in formulating their national and international investment policies. To this end, the IPFSD identifies eleven key critical principles. As part of these fundamental principles, IPFSD provides states with guidance and advice on formulating a good investment policy, including clause options for negotiators, to increase the value of the national investment policy for sustainable development. Preferential trade and investment agreements (PTIA) are broader economic agreements between countries concluded to facilitate international trade and the cross-border transfer of inputs. These may include economic integration agreements, free trade agreements (FAs), Economic Partnership Agreements (EPAs) or other similar types of agreements covering, among other things, foreign investment provisions. In PTIA, the foreign investment section is only a small part of the contract, which usually includes one or two chapters. Other topics covered in the PTIA include trade in goods and services, tariffs and non-tariff barriers, customs procedures, specific rules for certain sectors, competition, intellectual property, temporary entry of people and much more. PTIA follows trade and investment liberalization as part of this broader priority.

Often, the structure and appearance of the chapter on foreign investment is similar to a bit. Unlike investment protection, investment promotion provisions are rarely formally included in AI and, if so, these provisions generally remain non-binding.