Investment Dispute Prevention and Management Agencies
Toward a more informed policy discussion
-
While investment DPMAs are often promoted as a solution to investment disputes, few states have established such agencies, and there is considerable variation in their design and operation.
-
There are some major risks associated with DPMAs that are not reflected in claims they can solve current challenges associated with investment disputes.
-
Governments should consider their investment goals, the different options for achieving them, and the risks involved before deciding whether to establish a dispute prevention and management agency.
Foreign investment can provide much-needed financial resources for developing countries, but the risk of costly claims under the investor-state dispute settlement (ISDS) system can counteract these benefits. Investment dispute prevention and management agencies (DPMAs) are therefore frequently touted as a potential solution to the ISDS challenge, but how much do we know about them?
Only a relatively small number of states have established such agencies and there is considerable variation in their design and operation. This report reviews and analyzes how they operate and what effects they have had. It seeks to contribute to a more informed and evidence-based policy discussion.
The report starts by situating DPMAs in the context of wider discussions about investment governance, pulling apart some of the assumptions regarding the inevitability of ISDS risks and the underlying drivers of investment disputes. It then reviews and compares existing DPMAs in seven different states, drawing attention to the risks and benefits associated with them and how they operate in relation to other systems of investment governance.
You might also be interested in
Ouvrir la voie à l’investissement responsable (in French)
La Suisse s’engage en faveur de l’application des Principes pour un investissement responsable dans l’agriculture et les systèmes alimentaires approuvés en 2014 par le Comité de la sécurité alimentaire mondiale des Nations Unies. Le chemin reste toutefois long jusqu’à une mise en œuvre complète.
The Joint Initiative on Investment Facilitation for Development
This stocktaking brief provides an update on the joint initiative negotiations on Investment Facilitation for Development among a group of World Trade Organization (WTO) members. The brief provides updates on how the draft negotiating text has evolved since 2022, as well as an overview of how the process is likely to evolve in the run-up to MC13.
Legal expert: ECT withdrawal 'is the only possible course of action'
Following the decision by several EU member states to leave the controversial Energy Charter Treaty (ECT), the European Commission must now put proposals on the table for the EU to withdraw collectively, says Lukas Schaugg.
In U-turn, Brussels recommends EU-wide exit from controversial Energy Charter Treaty
In a notable U-turn, the European Commission has proposed a collective and coordinated exit of all 27 member states from the controversial Energy Charter Treaty (ECT), an obscure international agreement that protects energy investors from unexpected circumstances that might hurt their profit expectations.