Temporal Validity of International Investment Agreements: A Large Sample Survey of Treaty Provisions

Abstract

International investment agreements (IIAs) almost universally define their temporal validity and thus set conditions for States' exit from these treaties.

This study presents the results of the survey of language that determines the temporal validity of 2,061 bilateral investment agreements that the 55 economies participating in the OECD-hosted Freedom of Investment Roundtables have concluded with any other economy.

The paper summarizes in its first part past and current treaty practice in this regard: how do States design the parameters that define the temporal validity of their treaties and the duration of the obligations contained therein? How has this design evolved over time? Do different kinds of IIAs take different approaches to this matter? Have individual States developed distinct practices or policies?

The second part of the paper presents key findings that result from the analysis of treaty practice in a large number of agreements. It highlights characteristics of the provisions on temporal validity employed in IIAs; emphasizes the collective engagement that results from the clauses in IIAs and the consequences of country-specific practice; and suggests questions on intriguing policy choices that a large comparative study reveals.

Keywords: foreign investment, international investment, international investment law, international investment agreements, investment treaties, bilateral investment treaties, comparative law, investment law

JEL Classification: F21, F23, F53, F55, K33, K41, N40, P45