International Investment Law and the Protection of Foreign Investment in Brazil

Abstract

Notorious for its non-participation in the international system of investment protections, Brazil is one of the most popular destinations for foreign direct investment (FDI) around the world. But unlike most countries, including its neighbours in Latin America, Brazil is neither party to any bilateral investment treaties (BITs) presently in force nor has it ever ratified the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention). And yet, the South American country may be on the verge of setting down an alternative and previously unforeseen track with the conclusion of the first cooperation and investment facilitation agreements (CFIAs). At this turning point in Brazil’s investment treatymaking, this article explores the protection of foreign investment in Brazil in the absence of the traditional network of international investment agreements and the state’s progressively changing approach to international investment law through the creation of a strong alternative negotiating model.

Keywords: Brazil, cooperation and facilitation investment agreement (CFIA), investment law, investor-State dispute settlement (ISDS), model treaty, international investment agreements (IIA), bilateral investment treaties (BITs)

JEL Classification: F02, F13, F21, F53, K41, K39, K40, K10, K33, K49, K12, K19, K20, K29, H70, E22, H87, F50, F52