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The document proposes a comprehensive Cotonou Investment Agreement to replace existing bilateral investment treaties (BITs) and better align foreign direct investment with the sustainable development goals of the Cotonou Partnership Agreement (CPA). It argues that current international investment agreements focus too narrowly on investor protection and lack empirical evidence of benefiting developing countries. The proposed agreement would balance investor rights with host state obligations and public goods, incorporating principles of legitimacy, transparency, and accountability. Key recommendations include the establishment of an Observatory for ACP Investment to monitor results, a Cotonou Investment Fund to support small and medium enterprises, and the use of regional institutions to manage environmental reviews and competition authorities. The author emphasizes the need for a dispute settlement mechanism that requires the exhaustion of domestic remedies and shows deference to public policy goals, moving away from current models like ICSID or UNCITRAL.

The report argues that international investment agreements do not automatically generate economic benefits and proposes a new approach for the Cotonou Partnership. It advocates for an agreement based on the balance between investor rights and public goods, the distinction between pre- and post-establishment rights, and the creation of a Cotonou Investment Fund. The author emphasizes the need for a transparent, legitimate international dispute settlement mechanism to replace existing systems like ICSID and UNCITRAL, and suggests replacing heterogeneous bilateral investment treaties with a single unified agreement.