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*View this email in your browser* <https://mailchi.mp/law/perspective-295?e=ff00fc58e5> *哥伦比亚大学国际直接投资展望中文版都可以在我们的网站查看：* *http://ccsi.columbia.edu/publications/columbia-fdi-perspectives.* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=2f214646e7&e=ff00fc58e5> *Columbia FDI Perspectives* Perspectives on topical foreign direct investment issues No. 295 January 11, 2021 Editor-in-Chief: Karl P. Sauvant (*[log in to unmask]* <[log in to unmask]>) Managing Editor: Riccardo Loschi (*[log in to unmask]* <[log in to unmask]>) *Facilitating investment through IIAs: The case of the Regional Comprehensive Economic Partnership Agreement* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=881c21f8fa&e=ff00fc58e5> *** by Stefanie Schacherer**** On November 15, 2020, the Regional Comprehensive Economic Partnership (RCEP) agreement was signed. It is one of the world’s largest trade and investment pacts, compromising almost 30% of global GDP and one-third of the world’s population. The RCEP counts 15 signatories composed of the Association of Southeast Asian Nations (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam) and ASEAN’s free trade agreement partners (Australia, China, Japan, New Zealand, the Republic of Korea). India stepped out of the negotiations in November 2019. RCEP’s provisions on trade and investment facilitation should give a significant boost to FDI in the region.*[1]* Facilitating quantitatively and qualitatively more sustainable investment will be especially crucial in the post-Covid-19 era. RCEP’s Investment Chapter seeks to facilitate investment originating from both inside and outside the region by promoting transparency and streamlining administrative procedures for investors within the RCEP region. Hence, RCEP further consolidates the increasing trend of including specific provisions on investment facilitation in international investment agreements.*[2]* RCEP’s provision on investment facilitation follows ASEAN treaty practice, as its wording is no different from the *ASEAN-China FTA* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=35b2002651&e=ff00fc58e5>* (ACFTA)* and the *ASEAN Comprehensive Investment Agreement* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=1220f75773&e=ff00fc58e5>* (ACIA)*. Under the RCEP “each Party shall endeavor to facilitate investments among the Parties” through the implementation of four measures: “(a) Creating the necessary environment for all forms of investment; (b) Simplifying its procedures for investment applications and approvals; (c) Promoting the dissemination of investment information, including investment rules, laws, regulations, policies, and procedures; (d) Establishing or maintaining contact points, one-stop investment centers, focal points, or other entities in the respective Party to provide assistance and advisory services to investors, including the facilitation of operating licenses and permits.”*[3]* Like ACFTA, but different from ACIA, the RCEP provision is “subject to [the] domestic laws and regulations” of the parties. Hence, the provision is programmatic in nature and does not further dictate how RCEP parties are to facilitate investment. Such a “built-in work program” is a typical approach of ASEAN treaty practice. While the provision may appear liberal, many ASEAN states have rather restrictive legal frameworks, often requiring foreign investors to obtain written permission to enter. The remainder of the provision on investment facilitation suggests alternative means of facilitating dispute resolution (e.g., through grievance mechanisms) and preventing disputes. While the listed measures are not binding on the parties, the RCEP favors a more collaborative approach to resolve and/or prevent disputes between investors and states. *[4]* Flexibility for domestic implementation is welcome. The RCEP region comprises a highly diverse group of economies, and each of them has different requirements and imperatives on how to manage investment and how investment facilitation should unfold concretely. For instance, some RCEP economies rely heavily on agriculture, whilst others focus on investment in services and high-tech manufacturing. The region’s least developed countries (Myanmar, Lao’s People Republic, Cambodia), in particular, face quite different economic challenges than their more advanced economies. The common objective of all investment facilitation efforts should be to fill the investment gap for achieving the Sustainable Development Goals (SDGs). To gain the benefits of quality investment, the question of what kind of investment is targeted remains crucial. While RCEP’s investment facilitation provision suggests that “all forms of investment”*[5]* should benefit from investment facilitation, sector-specific facilitation is fundamental and should allow targeting of SDG-related investment. A concrete example is the *2016 Law on Investment Promotion of the Lao People’s Democratic Republic* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=ca95a66ad8&e=ff00fc58e5>, which establishes a specific administrative mechanism to create favorable conditions to attract investment that uses innovation in the production of agricultural products to save natural resources and energy. Whilst investment facilitation is mostly associated with streamlining processes, improving efficiency and reducing timelines, it should likewise be about improving the quality of engagement and outcomes. Put differently, facilitating sustainable FDI is not about securing quick environmental and other approvals, but about enhancing the likelihood of long-term success for all stakeholders. The RCEP can be an opportunity to set a collaborative framework for investment facilitation, allowing for exchanges among the contracting parties on best practices, building on their experiences. The framework could be organized by the RCEP Joint Committee or with the support of the ASEAN Secretariat. In particular, the exchange of practices on sustainable FDI can be a valuable source for generating policy ideas. Cooperative processes might also include capacity building, information sharing and sector-specific guidance. An example is policy benchmarking for investment promotion agencies, thus avoiding one-fits-all rules at the regional level. In other words, approaches to address administrative procedures at national and local levels should be preferred over implementing top-down regional or multilateral commitments. ------------------------------ *** *The Columbia FDI Perspectives are a forum for public debate. The views expressed by the author(s) do not reflect the opinions of CCSI or Columbia University or our partners and supporters. Columbia FDI Perspectives (ISSN 2158-3579) is a peer-reviewed series.* **** Stefanie Schacherer (*[log in to unmask]* <[log in to unmask]>) is a Swiss National Science Foundation post-doctoral research fellow at the World Trade Institute, University of Bern. The author wishes to thank Julien Chaisse, Makane Moïse Mbengue and M. Sornarajah for their helpful peer reviews. *[1]* Julien Chaisse, “*The Regional Comprehensive Economic Partnership’s investment chapter: One step forward, two steps back?* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=8b7a726b5e&e=ff00fc58e5>,” *Columbia FDI Perspectives*, No. 271, Feb. 10, 2020. *[2]* See, e.g., *the recent negotiations between the EU and Angola* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=301491c575&e=ff00fc58e5> . *[3]* *RCEP, Article 10.17.1* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=683041c7b9&e=ff00fc58e5> . *[4]* *RCEP, Article 10.17.2-4* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=2510ef9cba&e=ff00fc58e5>. The provision is not subject to the treaty’s dispute-settlement mechanism (Article 10.17.5). *[5]* It is unclear how this notion relates to the definition of “covered investment” under RCEP, Article 10.1. Considering that Article. 10.17.2 refers to “covered investment”, it seems that the parties deliberately chose “all forms of investment” as to mean a wider category of investment. *The material in this Perspective may be reprinted if accompanied by the following acknowledgment: “Stefanie Schacherer, ‘Facilitating investment through IIAs: The case of the Regional Comprehensive Economic Partnership Agreement,’ Columbia FDI Perspectives No. 295, January 11, 2021”. Reprinted with permission from the Columbia Center on Sustainable Investment (* *www.ccsi.columbia.edu* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=15aacb9bd3&e=ff00fc58e5>*).” A copy should kindly be sent to the Columbia Center on Sustainable Investment at **[log in to unmask]* <[log in to unmask]>*.* For further information, including information regarding submission to the *Perspectives*, please contact: Columbia Center on Sustainable Investment, Riccardo Loschi, *[log in to unmask]* <[log in to unmask]>. *Most recent Columbia FDI Perspectives* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=97a3539286&e=ff00fc58e5> - No. 294, Federico Ortino, ‘Taming the chaos in investment treaty protections,’ Columbia FDI Perspectives, December 28, 2020 - No. 293, Crina Baltag, ‘From investment promotion and protection to investment regulation,’ Columbia FDI Perspectives, December 14, 2020 - No. 292, Khalil Hamdani, ‘The development dimension of an investment facilitation framework,’ November 30, 2020 *All previous FDI Perspectives are available at * *http://ccsi.columbia.edu/publications/columbia-fdi-perspectives/* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=95c545d3ff&e=ff00fc58e5>*. * * Other relevant CCSI news and announcements* - *CCSI is hiring!:* *Project Lead: Food Sector and the Sustainable Development Goals* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=3b746e456c&e=ff00fc58e5>. We are recruiting a researcher to lead on our nascent program to develop a robust conceptual framework to rigorously define the contours of *SDG-aligned corporate conduct* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=fca563e15a&e=ff00fc58e5> in the food sector. For more information, please visit our website *here* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=5fe65c85aa&e=ff00fc58e5> . - CCSI announces a *call for papers* for the 2020 edition of the Yearbook on International Investment Law and Policy. Original contributions to be considered for publication in the Yearbook will be accepted on a rolling basis until *February 28, 2021.* More information can be found *here* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=87dcb20978&e=ff00fc58e5> . - *CCSI is accepting applications until March 31, 2021 *for its Executive Training on Sustainable Investments in Agriculture, which will take place online June 15-25, 2021. Please *visit our website* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=ec15b6a7c7&e=ff00fc58e5> for more information, including on how to apply. - *CCSI is accepting applications until February 28, 2021 *for its Executive Training on Extractive Industries and Sustainable Development, which will take place online June 7-18, 2021. Please *visit our website* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=52485f4457&e=ff00fc58e5> for more information, including on how to apply. Karl P. Sauvant, Ph.D. Resident Senior Fellow Columbia Center on Sustainable Investment Columbia Law School - Earth Institute Ph: *(212) 854-0689* <%28212%29%20854-0689> Fax: *(212) 854-7946* <%28212%29%20854-7946> *Copyright © 2021 Columbia Center on Sustainable Investment (CCSI), All rights reserved.* *[log in to unmask]* <[log in to unmask]> * Our mailing address is:* Columbia Center on Sustainable Investment (CCSI) Columbia Law School - Earth Institute, Columbia University 435 West 116th Street New York, NY 10027 *Add us to your address book* <https://columbia.us6.list-manage.com/vcard?u=ab15cc1d53&id=a61bf1d34a> *unsubscribe from this list* <https://columbia.us6.list-manage.com/unsubscribe?u=ab15cc1d53&id=a61bf1d34a&e=ff00fc58e5&c=5f9e277962> *update subscription preferences* <https://columbia.us6.list-manage.com/profile?u=ab15cc1d53&id=a61bf1d34a&e=ff00fc58e5> <http://www.mailchimp.com/email-referral/?utm_source=freemium_newsletter&utm_medium=email&utm_campaign=referral_marketing&aid=ab15cc1d53&afl=1> *Disclaimer: This email (including any attachments) is for the use of the intended recipient only and may contain confidential information and/or copyright material. If you are not the intended recipient, please notify the sender immediately and delete this email and all copies from your system. Any unauthorized use, disclosure, reproduction, copying, distribution, or other form of unauthorized dissemination of the contents is expressly prohibited.* -- *Karl P. Sauvant, PhD* *Resident Senior Fellow* *Columbia Center on Sustainable Investment* Columbia Law School - The Earth Institute, Columbia University 435 West 116th St., Rm. JGH 825, New York, NY 10027 | p: (212) 854 0689 | cell: (646) 724 5600 e: [log in to unmask] | w: www.ccsi.columbia.edu | t: @CCSI_Columbia <https://twitter.com/CCSI_Columbia> "An Inventory of Concrete Measures to Facilitate the Flow of Sustainable FDI: What? Why? How?", "Note on the Costs and Financing of an Advisory Centre on International Investment Law", "Insulating a WTO Investment Facilitation Framework from ISDS", "Enabling the Full Participation of Developing Countries in Negotiating a WTO Investment Facilitation Framework", "Advancing Sustainable Development by Facilitating Sustainable FDI, Promoting CSR, Designating Recognized Sustainable Investors, and Giving Home Countries a Role", "Making FDI more Sustainable", "The Case for an Advisory Centre on International Investment Law", "An Advisory Centre on International Investment Law: Key Features", "The Potential Value-added of a Multilateral Framework on Investment Facilitation for Development", "International Investment Facilitation: By Whom and for What?" are available at https://ssrn.com/author=2461782 . ____ AIB-L is brought to you by the Academy of International Business. 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