{"id":80,"date":"2016-06-08T11:21:08","date_gmt":"2016-06-08T15:21:08","guid":{"rendered":"http:\/\/www.iisd.org\/toolkits\/sustainability-toolkit-for-trade-negotiators\/?page_id=80"},"modified":"2018-01-24T21:45:52","modified_gmt":"2018-01-25T05:45:52","slug":"5-2-definition-of-investment","status":"publish","type":"page","link":"https:\/\/www.iisd.org\/toolkits\/sustainability-toolkit-for-trade-negotiators\/5-investment-provisions\/5-2-definition-of-investment\/","title":{"rendered":"5.2 Definition of Investment"},"content":{"rendered":"

A further way to integrate environment and sustainable development more broadly into the treaty in an overarching manner is through a scope article or through the definition of \u201cinvestment.\u201d If a treaty contains investor\u2013state arbitration, the definition of investment is particularly important because it will determine whether or not an investor can force host states into binding arbitration: if there is no investment as defined in the treaty, no such claim can be brought. There are three relevant considerations for defining investment:19<\/p>\n

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  1. Investment can be defined on an enterprise basis or an asset basis. An enterprise-based definition defines investment as the establishment or acquisition of an enterprise in the host state. By contrast, the asset-based definition is broader, covering more than just capital or resources that have crossed the borders with a view of creating an enterprise. Both options are typically further defined and limited through exclusions and clarifications.<\/li>\n
  2. Investment can also be defined such that covered investments must be constituted or operated in compliance with the law of the host state.<\/li>\n
  3. It could be defined such that covered investments must contribute to the economic development of the host state in some specified manner. This could be done, for example, through the use of a positive list of sectors in which the host state sees its development interests most appropriately addressed by foreign direct investment, and which then are defined as investment for the purposes of the agreement.<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    A further way to integrate environment and sustainable development more broadly into the treaty in an overarching manner is through a scope article or through the definition of \u201cinvestment.\u201d If a treaty contains investor\u2013state arbitration, the definition of investment is particularly important because it will determine whether or not an investor can force host states… Read more »<\/a><\/p>\n","protected":false},"author":7,"featured_media":0,"parent":76,"menu_order":2,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":"2"},"class_list":["post-80","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.iisd.org\/toolkits\/sustainability-toolkit-for-trade-negotiators\/wp-json\/wp\/v2\/pages\/80","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.iisd.org\/toolkits\/sustainability-toolkit-for-trade-negotiators\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.iisd.org\/toolkits\/sustainability-toolkit-for-trade-negotiators\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.iisd.org\/toolkits\/sustainability-toolkit-for-trade-negotiators\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.iisd.org\/toolkits\/sustainability-toolkit-for-trade-negotiators\/wp-json\/wp\/v2\/comments?post=80"}],"version-history":[{"count":0,"href":"https:\/\/www.iisd.org\/toolkits\/sustainability-toolkit-for-trade-negotiators\/wp-json\/wp\/v2\/pages\/80\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/www.iisd.org\/toolkits\/sustainability-toolkit-for-trade-negotiators\/wp-json\/wp\/v2\/pages\/76"}],"wp:attachment":[{"href":"https:\/\/www.iisd.org\/toolkits\/sustainability-toolkit-for-trade-negotiators\/wp-json\/wp\/v2\/media?parent=80"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}