02. Dezember 2020
Agreement Is Concerned With Globalization Of International Investment
An International Investment Agreement (IIIA) is a kind of country-to-country treaty that addresses issues relevant to cross-border investment, usually to protect, promote and liberalize such investments. Most FDI covers foreign direct investment (FDI) and portfolio investments, some of which do not exclude them. Countries that enter into agreements commit to specific standards for the treatment of foreign investment in their territory. In the event of non-compliance with these obligations, AAs continue to define dispute resolution procedures. The most common types of I2 are bilateral investment agreements (ILOs) and preferential trade and investment agreements (PTIA). International tax treaties and double taxation (DT) agreements are also considered AI, as taxation often has a significant impact on foreign investment. 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. There are many examples of PTIAs.
The North American Free Trade Agreement (NAFTA) is remarkable. While NAFTA addresses a very wide range of issues, including cross-border trade between Canada, Mexico and the United States, Chapter 11 of the agreement contains detailed foreign investment provisions similar to those contained in the ILO.  Other bilateral examples of PTIA are available in the JAPAN-Singapore EPA, in the Republic of Korea-Chile Free Trade Agreement and in the U.S.-Australia Free Trade Agreement.  Another important trend is the multiplicity of agreements.  As a result, the developing international CEW system has been likened to a metaphor for a „spaghetti shell.“ According to UNCTAD, the system is universal, as virtually every country has signed at least one I2. At the same time, it can be considered atomized because of the large number of individual agreements that currently exist. The system is complex, with the signing of agreements at all levels (bilateral, sectoral, regional, etc.).