To Terminate or Not to Terminate Intra-Regional BITs: Lessons from different economic blocs

Megaregional treaties that include investment chapters—like the United States–Mexico–Canada Agreement and Comprehensive and Progressive Agreement for Trans-Pacific Partnership—have been increasingly common in recent years. But what happens to the pre-existing bilateral investment treaties (BITs) between parties once they enter into a megaregional agreement?  

How such “intra-regional BITs” are dealt with is a crucial and overlooked question, with important implications for investment governance coherence and the impact of investment treaty reforms. Different regional blocs have dealt with this question in various ways. Some regions are terminating their intra-regional BITs and replacing them with newer megaregional agreements; others explicitly allow for co-existence between intra-regional BITs and newer agreements; while others remain silent. This webinar aimed to draw lessons from different economic blocs exploring how they deal with existing investment treaties once newer mega-regional or multilateral treaties come into force. 

Our speakers examined these different approaches to their design and process and detail the specific policy and legal implications raised, including examining: What are the specificities and contexts which lead to or can explain the approaches taken? Which approaches are likely to be the most practical and efficient way to address coherence and consistency in international investment governance? What are some criteria governments may want to consider when drafting termination provisions to address intra-BITs? What role can political institutions have in this process?  

This webinar is part one of a two-part series aimed at supporting countries as they consider options for enhancing coherence and consistency in investment standards. This required addressing both intra-BITs, that is, bilateral investment agreements between them and extra-BITs, that is, bilateral investment agreements between them and countries outside their regional grouping. This first webinar focuses on the former, addressing intra-regional BITs. 

This event was originally scheduled for September 15 but was rescheduled. 

Moderator

• Nyaguthii Maina, Associate, IISD

Speakers

• Jaroslav Kudrna, Head of the International Arbitration and Investment Protection Unit, Ministry of Finance, Czech Republic
• Emily Mburu-Ndoria, Director, Directorate of Trade in Services, Investment, IPR, and Digital Trade, AfCFTA Secretariat
• Suzy Nikièma, Lead, Sustainable Investment, IISD
• Vanessa Rivas Plata, President, Special Commission Representing Peru in International Investment Disputes
• Yuanita Ruchyat, Senior Officer, Investment, Services and Investment Division, Market Integration Directorate, ASEAN Economic Community Department, ASEAN Secretariat 
• Stefanie Schacherer, Assistant Professor of Law, Singapore Management University