The Hidden Costs of RCEP and Corporate Trade Deals in Asia

This briefing by Friends of the Earth International examines the financial and regulatory impacts of Investor-State Dispute Settlement (ISDS) mechanisms on countries negotiating the Regional Comprehensive Economic Partnership (RCEP). It argues that ISDS allows foreign corporations to sue governments over public interest regulations, creating significant financial burdens and a 'regulatory chill' that undermines democracy and the right to regulate.

• Since 1994, 50 investment arbitration cases have been filed against 11 RCEP countries, with a significant surge occurring after 2010. India is the most targeted, accounting for 40% of these cases.
• Foreign investors have claimed at least 31 billion USD from RCEP countries, a sum that exceeds India's entire 2015 health budget by 7 billion USD. The vast majority of these claims (81%) are concentrated in four countries: India, South Korea, Australia, and Vietnam.
• Investors have a high success rate in ISDS cases against RCEP countries, winning 67% of resolved cases through either tribunal awards or settlements. Of the 50 known lawsuits, 42% remain pending.
• European-based investors are the primary users of ISDS against RCEP nations, initiating 68% of the cases. The Netherlands, United Kingdom, and France are the most frequent home countries of these investors.
• ISDS cases frequently target environmentally relevant sectors, which account for 36% of cases. Examples include the 1.3 billion USD claim by Churchill Mining against Indonesia following the revocation of mining licenses in East Kalimantan.
• The briefing highlights how ISDS is used to challenge public health and tax policies. Philip Morris claimed 4.1 billion USD from Australia over plain packaging tobacco laws, and Hanocal sued South Korea for 168 million USD over withheld taxes.
• RCEP countries have signed 831 international investment agreements (IIAs), with 676 currently in force. While 87% of existing Bilateral Investment Treaties (BITs) could potentially be terminated, the briefing warns that Free Trade Agreements (FTAs) are harder to reform because the entire treaty must be terminated to remove investment protection chapters.

APA

Olivet, C., Moore, K., Cossar-Gilbert, S., & Cingotti, N. (2016). The Hidden Costs of RCEP and Corporate Trade Deals in Asia. Friends of the Earth International. https://www.foei.org/wp-content/uploads/2021/05/The-hidden-costs-of-RCEP-and-corporate-trade-deals-in-Asia-FoEI.pdf

Chicago

Olivet, Cecilia, Kat Moore, Sam Cossar-Gilbert, and Natacha Cingotti. The Hidden Costs of RCEP and Corporate Trade Deals in Asia. Friends of the Earth International, 2016. https://www.foei.org/wp-content/uploads/2021/05/The-hidden-costs-of-RCEP-and-corporate-trade-deals-in-Asia-FoEI.pdf.

Wikipedia

{{cite report |last1=Olivet |first1=Cecilia |last2=Moore |first2=Kat |last3=Cossar-Gilbert |first3=Sam |last4=Cingotti |first4=Natacha |title=The Hidden Costs of RCEP and Corporate Trade Deals in Asia |publisher=Friends of the Earth International |date=December 2016 |url=https://www.foei.org/wp-content/uploads/2021/05/The-hidden-costs-of-RCEP-and-corporate-trade-deals-in-Asia-FoEI.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{olivet2016hidden, author = {Olivet, Cecilia and Moore, Kat and Cossar-Gilbert, Sam and Cingotti, Natacha}, title = {{The Hidden Costs of RCEP and Corporate Trade Deals in Asia}}, institution = {Friends of the Earth International}, year = {2016}, month = dec, url = {https://www.foei.org/wp-content/uploads/2021/05/The-hidden-costs-of-RCEP-and-corporate-trade-deals-in-Asia-FoEI.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }