The Scope and Limits of Trade's Influence in Shaping the Evolving International Investment Regime

Abstract

This paper examines the extent to which the international trade regime impacts the international investment regime. While commentators have identified rich areas of cross-fertilization and suggested increasing convergence between the two regimes, the evidence reveals only a limited and selected degree of influence. Specific attention is paid to four areas: the design and architecture of the investment regime; the patterns of investment treaty formation; the substance of investment treaty provisions; and treaty interpretation. Across these four areas, interactions between the two regimes remain sporadic and decentralized. Given the different normative orientations of the two regimes, one should not expect growing rapprochement in the foreseeable future between the two regimes.

Keywords: Trade, International Investment, WTO, TRIMS, Bilateral Investment Treaties

JEL Classification: F10, F13, F21