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The Investment Version of the Asian Noodle Bowl: The Proliferation of International Investment Agreements

Author

Listed:
  • Julien Chaisse

    (The Chinese University of Hong Kong)

  • Shintaro Hamanaka

    (Asian Development Bank)

Abstract

While there is an extensive amount of literature on the noodle bowl of agreements in Asia, the majority of studies exclusively focus on trade (in goods). So far, little emphasis has been placed on the proliferation of international investment treaties (IIAs). Given the significance of IIAs, it is ideal to tackle them extensively as well. Investment chapters under free trade agreements (FTAs) and bilateral and plurilateral investment treaties constitute IIAs. There are more than 1,000 IIAs in Asia. The noodle bowl of FTAs usually results in more options for traders and even can bring unexpected preferences for third parties. These outcomes are all welfare-enhancing, but the literature has overemphasized the effect of complicated rules of origins and other issues. On the other hand, the story of the proliferation of IIAs and the investment noodle bowl is totally different, and as such would lead to inconsistency across IIAs and bring legal interpretation problems as well as the proliferation of unexpected investor-state disputes. This paper aims to provide a detailed reading of recent advances in Asian investment rulemaking and a finer appreciation of how rules in Asian IIAs have evolved in response to stimuli. While existing studies mainly deal with the interpretation and application of the IIAs in which the rules are given, this study deals in turn with the development of rules, including investment protection. The main objective of the paper is to describe and provide an exhaustive mapping of the recent Asian experiences in investment rule-making through regional and bilateral agreements, providing a detailed analytical account of key dimensions of investment treaties. This comprehensive study offers insights on the possible make-up of future attempts at embedding comprehensive investment norms into the regional (such as the Trans-Pacific Partnership) and/or WTO architecture.

Suggested Citation

  • Julien Chaisse & Shintaro Hamanaka, 2014. "The Investment Version of the Asian Noodle Bowl: The Proliferation of International Investment Agreements," Working Papers on Regional Economic Integration 128, Asian Development Bank.
    • Handle: RePEc:ris:adbrei:0128
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    References listed on IDEAS

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    1. Richard E. Baldwin, 2011. "Multilateralising Regionalism: Spaghetti Bowls as Building Blocks on the Path to Global Free Trade," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume I, chapter 2, Edward Elgar Publishing.
    2. Tania Voon & Andrew Mitchell, 2011. "Time to Quit? Assessing International Investment Claims against Plain Tobacco Packaging in Australia," Journal of International Economic Law, Oxford University Press, vol. 14(3), pages 515-552, September.
    3. Julien Chaisse & Mitsuo Matsushita, 2013. "Maintaining the WTO's Supremacy in the International Trade Order: A Proposal to Refine and Revise the Role of the Trade Policy Review Mechanism," Journal of International Economic Law, Oxford University Press, vol. 16(1), pages 9-36, March.
    4. Hamanaka, Shintaro, 2012. "Evolutionary paths toward a region-wide economic agreement in Asia," Journal of Asian Economics, Elsevier, vol. 23(4), pages 383-394.
    5. Richard E. Baldwin, 2006. "Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade," The World Economy, Wiley Blackwell, vol. 29(11), pages 1451-1518, November.
    6. Julien Chaisse, 2012. "Promises and Pitfalls of the European Union Policy on Foreign Investment--How will the New EU Competence on FDI affect the Emerging Global Regime?," Journal of International Economic Law, Oxford University Press, vol. 15(1), pages 51-84, March.
    7. Julien Chaisse & Christian Bellak, 2011. "Do Bilateral Investment Treaties Promote Foreign Direct Investment?," Transnational Corporations Review, Ottawa United Learning Academy, vol. 3(4), pages 3-10, December.
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    Cited by:

    1. Chaisse Julien & Pomfret Richard, 2019. "The RCEP and the Changing Landscape of World Trade : Assessing Asia-Pacific Investment Regionalism Next Stage," The Law and Development Review, De Gruyter, vol. 12(1), pages 159-190, January.
    2. Gopalan, Sasidaran & Park, Cyn-Young & Rajan, Ramkishen S., 2023. "Do International Investment Agreements attract Foreign Direct Investment inflows? Revisiting the literature," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 471-481.
    3. Hamanaka, Shintaro, 2016. "Dynamics of investment negotiations between China and Japan : the China-Japan-Korea trilateral investment treaty and beyond," IDE Discussion Papers 613, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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    More about this item

    Keywords

    bilateral investment treaty (BIT); free trade agreement (FTA); foreign direct investment (FDI); nood;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements

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