Investment Facilitation and Sustainable Development: Insufficiencies and Improvements of ASEAN Investment Treaties

Investment facilitation has become a major topic in recent investment rule-making. Different approaches have been adopted to make international investment treaties (IITs) compatible with investment facilitation, including the laissez-faire approach, the patching-up approach, the orientation-shift approach, and the multilateralization approach. Investment facilitation and sustainable development are closely interrelated. Investment facilitation provisions (IFPs) in IITs are expected to contribute to both facilitating investment and promoting sustainable development. While the majority of ASEAN IITs, the RCEP in particular, contain a standalone investment facilitation clause that covers various IFPs, these IFPs are insufficiently effective in promoting sustainable development. It is advised that ASEAN states make further IIT-making and regulatory coordination efforts, especially at the regional level, to make ASEAN IITs more compatible with investment facilitation and sustainable development.