Recent Developments in International Investment Agreements: Negotiations and disputes

The document analyzes the growth and modification of International Investment Agreements (IIAs), noting a trend toward more precise treaty language to preserve state regulatory space, particularly regarding environmental and labor standards. It also details the rise in investor-State disputes, highlighting that while states and investors have similar win rates in concluded cases, the financial stakes and costs of defense are increasing, with developing countries frequently appearing as respondents.

• There is a significant growth in the number of International Investment Agreements (IIAs), with over 3,000 in existence, including 2,750 Bilateral Investment Treaties (BITs) and 295 other IIAs. Activity peaked in 2009 with 102 new IIAs concluded, including 82 BITs.
• Governments are increasingly refining IIA language to protect their 'legal space to regulate.' This includes narrowing the definition of Fair and Equitable Treatment (FET) to customary international law or 'denial of justice only,' and clarifying that 'full protection and security' refers specifically to physical police protection.
• Recent IIAs show an increasing integration of environmental and labor clauses. Strategies include adding environmental protection to general exception clauses, confirming a state's right to set its own environmental protection levels, and carving out environment-related disputes from investor-State dispute settlement (ISDS).
• There is a shift in how states manage existing treaties, characterized by an increase in renegotiations—with 19 BITs renegotiated in 2009—and some countries, such as Venezuela and Ecuador, terminating BITs to pursue domestic agendas.
• Investor-State disputes are rising, with 357 known cases filed by the end of 2009. The majority of these cases are initiated by investors from developed countries against developing and transition economies.
• The financial stakes of arbitration are escalating, evidenced by a March 2010 award of approximately US$700 million against Ecuador and a US$1.928 billion claim filed by Gold Reserve Inc. against Venezuela.
• Of the 164 concluded cases by the end of 2009, 38% were decided in favor of the State, 29% in favor of the investor, and 34% were settled. However, the high rate of settlements and the cost of defense may obscure the actual success rate for states.

APA

Malik, M. (2011). Recent Developments in International Investment Agreements: Negotiations and disputes. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/dci_2010_recent_developments_iias.pdf

Chicago

Malik, Mahnaz. Recent Developments in International Investment Agreements: Negotiations and disputes. International Institute for Sustainable Development, 2011. https://www.iisd.org/system/files/publications/dci_2010_recent_developments_iias.pdf.

Wikipedia

{{cite report |last1=Malik |first1=Mahnaz |title=Recent Developments in International Investment Agreements: Negotiations and disputes |publisher=International Institute for Sustainable Development |date=2011 |url=https://www.iisd.org/system/files/publications/dci_2010_recent_developments_iias.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{malik2011recent, author = {Malik, Mahnaz}, title = {{Recent Developments in International Investment Agreements: Negotiations and disputes}}, institution = {International Institute for Sustainable Development}, year = {2011}, url = {https://www.iisd.org/system/files/publications/dci_2010_recent_developments_iias.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }