386 Congyan Cai
The General Agreement on Tariffs and Trade (“GATT”) was created more than 60
years ago to establish a multilateral framework to govern international trade. To
date, no such multilateral framework exists vis-a-vis transnational investment.
As such, the prevailing approach revolves around bilateral trade agreements.
Nevertheless, efforts to multilateralize investment rules continue to develop. The
Trans-Pacific Partnership (“TPP”) negotiations may be one such effort that would
successfully multilateralize international investment rules.
Economic Partnership (hereinafter P3 Agreement) among Chile, New Zealand and
Singapore. It was convened in 2002 and joined by Brunei Darussalam in 2005. Then,
(hereinafter P4 Agreement), which came into force in 2006.
According to the
provision of open accession of the P4 Agreement,
the United States (2008), Australia
(2008), Peru (2008), Vietnam (2008), Malaysia (2010), Mexico (2012) and Canada (2012)
have joined in negotiations towards signing a TPP Agreement.
The P4 Agreement itself does not include an Investment Chapter. However, it
provides that “negotiations on investment regime shall start no later than two years
after entry into force of that Agreement.”
On June 12, 2012, the negotiated text of the
Investment Chapter was released.
This paper analyzes the effect the TPP Investment Chapter negotiations may
have on the multilateralization of international investment law. It is divided into
five parts including an Introduction and Conclusion. Part two will begin with
some theoretical debates regarding multilateralization. Part three will trace several
1 J. Morin & G. Gagné, What Can Best Explain the Prevalence of Bilateralism in the Investment Regime?, 36 Int’l J. Pol.
Econ. 53 (2007).
2 R. Dattu, A Journey from Havana to Paris: the Fifty-Year Quest for the Elusive Multilateral Agreement on Investment, 24
Fordham Int’l l.J. 275 (2000).
3 See Trans-Pacific Strategic Economic Partnership Agreement, available at http://www.mfat.govt.nz/downloads/trade-
agreement/transpacific/main-agreement.pdf (last visited on Sep. 9, 2013). For details, see M. Lewis, Expanding the P-4
Trade Agreement into a Broader Trans-Pacific Partnership: Implications, Risks and Opportunities, 4 asIan J. Wto &
Int’l hEalth l. & Pol’y 401(2009).
4 P4 Agreement art. 20.6.
5 See Trans-Pacific Partnership Negotiations History, available at http://www.mfat.govt.nz/Trade-and-Economic-
Relations/2-Trade-Relationships-and-Agreements/Trans-Pacific/index.php#history (last visited on Sep. 9, 2013).
6 P4 Agreement art. 20.1.
7 See Investment Chapter (leaked) of TPP negotiations, available at http://www.citizenstrade.org/ctc/wp-content/
uploads/2012/06/tppinvestment.pdf (last visited on Sep. 1, 2013).