Investment Arbitration Reform and the Pacific Rim Consensus

Abstract

Three distinct models of investment treaty practice have emerged, along geographic lines: a European model, a regional South model and a Pacific Rim model. Unlike the European and regional South models, the Pacific Rim model - although incorporating many policy innovations over the past few decades - has not diverged from past investment treaty practice in any fundamental respect. The combination of the Pacific Rim model’s adherence to past investment treaty practice, together with the European Union’s flexible, ‘open architecture’ approach to investment law reform, create opportunities for the Pacific Rim model to play a key role in advancing ongoing UNCITRAL Working Group III discussions on investment law reform; those discussions should further strengthen the resilience of the Pacific Rim model. The enduring Pacific Rim consensus on investment treaty practice can contribute significantly to the success of UNCITRAL Working Group III reform efforts.

Keywords: RCEP, CPTPP, UNCITRAL, China, Pacific Rim, investment arbitration, investment treaties, BITs, mega-regional FTAs

JEL Classification: K33