Dear Members of the World Investment Network,
I am pleased to share with you our IIA
Issues Note on the reform of the regime of international investment agreements
(IIAs). The note is based
on chapter III of UNCTAD's World Investment Report, which was launched
earlier this week.
While almost all countries are party to one or more IIAs, many are dissatisfied
with the current regime. Concerns relate mostly to the development dimension
of IIAs, the balance of rights and obligations between investors and States,
and the systemic complexity of the IIA regime.
Countries' current efforts to address these challenges reveal four different
paths of action: (i) some aim to maintain the status quo, largely refraining
from changes in the way they enter into new IIA commitments; (ii) some
are disengaging from the IIA regime, unilaterally terminating existing
treaties or denouncing multilateral arbitration conventions; and (iii)
some are implementing selective adjustments, modifying models for future
treaties but leaving the treaty core and the body of existing treaties
mostly unchanged. Finally, (iv) some opt for systematic reform that aims
to comprehensively address the IIA regime's challenges in a holistic manner.
While each of these paths has benefits and drawbacks, systemic reform could
effectively address the complexities of the IIA regime and bring it in
line with the sustainable development imperative.
The systemic reform process of the IIA regime could follow a gradual approach
with carefully sequenced actions: (i) defining the areas for reform, (ii)
designing a roadmap for reform, and (iii) implementing it at the national,
bilateral and regional level, with facilitation at the multilateral level.
A multilateral focal point such as UNCTAD could support this holistic,
coordinated and sustainability-oriented approach to IIA reform. UNCTAD's
Investment
Policy Framework for Sustainable Development (IPFSD)
could offer guidance and the IIA Conference at UNCTAD's World
Investment Forum, scheduled
for 13-16 October in Geneva, could provide a platform for discussing it.
With kind regards,
James X. Zhan
Director
Investment & Enterprise Division
United Nations Conference on Trade & Development
Palais des Nations, Geneva
Tel: +41 22 9175797
www.unctad.org/diae
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