Old Agreements Must Be Terminated to Bring Life to Investment

7 Pages Posted: 6 Jun 2019

See all articles by Tania Voon

Tania Voon

University of Melbourne - Law School

Andrew D. Mitchell

University of Melbourne - Law School

Date Written: May 18, 2019

Abstract

Australia and Indonesia have signed a Comprehensive Economic Partnership Agreement that includes an investment chapter as well as an investor-State dispute settlement mechanism. Yet the concluded treaty affirms rights and obligations under all existing treaties including an older-style bilateral investment treaty (BIT). With elections just completed in both countries, an opportunity arises to rethink this approach to overlapping treaties. The two countries should agree to terminate their older BIT upon entry into force of the new agreement. Failure to do so risks complicating the existing relationship and heightening uncertainties with respect to regulatory sovereignty in both countries. Australia and Indonesia should look to their own existing practices to terminate the older agreement. Termination in such circumstances provides an important means of reforming international investment law.

Keywords: arbitration, Australia, Indonesia, international law, investment, trade

JEL Classification: K33

Suggested Citation

Voon, Tania and Mitchell, Andrew D., Old Agreements Must Be Terminated to Bring Life to Investment (May 18, 2019). Available at SSRN: https://ssrn.com/abstract=3390677 or http://dx.doi.org/10.2139/ssrn.3390677

Tania Voon (Contact Author)

University of Melbourne - Law School ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia

Andrew D. Mitchell

University of Melbourne - Law School ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61383441098 (Phone)
+61393472392 (Fax)

HOME PAGE: http://law.unimelb.edu.au/about/staff/andrew-mitchell

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