Myanmar’s Investment Treaties: A review of legal issues in light of recent trends

This report reviews Myanmar's investment treaty landscape as of June 2014, analyzing the legal implications of its bilateral investment treaties (BITs) and agreements negotiated through ASEAN. It highlights significant variations in drafting and provisions across these treaties, which increase the complexity of government compliance and the risk of costly investor-state arbitration claims.

• Myanmar has seven investment treaties currently in force, with an eighth (the Myanmar–Japan BIT) expected to enter into force soon. These treaties cover investment relationships with 15 countries across East, South-East and South Asia, and Oceania (specifically Australia and New Zealand).
• There is a high degree of variation between Myanmar's BITs and its ASEAN-negotiated treaties regarding the types of provisions included and their drafting. While ASEAN treaties show some consistency, the differences across the overall portfolio create complex compliance requirements for the government.
• Most of Myanmar's investment treaties allow foreign investors to bring claims directly to investor-state arbitration, resulting in binding monetary awards against the state. The only exception is the Myanmar–Philippines BIT.
• Most-favoured nation (MFN) clauses in Myanmar's treaties may allow investors to 'import' the most beneficial provisions from other treaties, potentially requiring Myanmar to grant a combination of benefits more generous than any single treaty intended.
• The Myanmar–Japan BIT is notably more extensive than other treaties, as it allows investor-state arbitration for claims regarding pre-establishment discrimination and the breach of prohibitions on performance requirements.
• Myanmar's early BITs use 'free-standing' fair and equitable treatment (FET) obligations without linking them to international law. In contrast, the ASEAN CIA and ASEAN +1 agreements link FET to international law and specifically define it as the obligation not to deny justice.
• The ASEAN CIA and AANZFTA provide more predictability regarding 'indirect expropriation' by including annexes that require a case-by-case inquiry into economic impact and the character of government action, and by exempting non-discriminatory regulatory measures for public welfare.
• Umbrella clauses, which can elevate contract breaches to treaty breaches, are present in the Myanmar–Japan BIT, the Myanmar–China BIT, and the ASEAN–China Agreement on Investment, but are absent from the ASEAN CIA.
• Myanmar's treaties vary on capital transfer rules. BITs with China and the Philippines allow restrictions based on national law, whereas six other treaties require transfers in 'freely usable currency at the market rate of exchange' and omit the 'subject to its laws' qualification.
• None of Myanmar's existing investment treaties impose obligations on foreign investors, although the Myanmar–Japan BIT prohibits the states themselves from lowering labour or environmental standards to attract investment.

APA

Bonnitcha, J. (2014). Myanmar’s Investment Treaties: A review of legal issues in light of recent trends. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/myanmar_investment_treaties_review_legal_issues.pdf

Chicago

Bonnitcha, Jonathan. Myanmar’s Investment Treaties: A review of legal issues in light of recent trends. International Institute for Sustainable Development, 2014. https://www.iisd.org/system/files/publications/myanmar_investment_treaties_review_legal_issues.pdf.

Wikipedia

{{cite report |last1=Bonnitcha |first1=Jonathan |title=Myanmar’s Investment Treaties: A review of legal issues in light of recent trends |publisher=International Institute for Sustainable Development |date=June 2014 |url=https://www.iisd.org/system/files/publications/myanmar_investment_treaties_review_legal_issues.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bonnitcha2014myanmars, author = {Bonnitcha, Jonathan}, title = {{Myanmar’s Investment Treaties: A review of legal issues in light of recent trends}}, institution = {International Institute for Sustainable Development}, year = {2014}, month = jun, url = {https://www.iisd.org/system/files/publications/myanmar_investment_treaties_review_legal_issues.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }