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Key Message

IISD's Model Agreement on Investment takes a fresh look at the formulation of international investment agreements. It differs by looking not only from the perspective of the investor, but at the rights and obligations of the host state as well. IISD's Model Agreement and accompanying publications focus on achieving sustainable development while fostering international investment.

IISD Model International Agreement on Investment

The IISD Model International Agreement on Investment for Sustainable Development (PDF - 563 kb) marks the first fundamental effort to review the nature and purpose of international investment agreements since the current model was developed almost 50 years ago.

Current investment agreement models, including those represented by the failed OECD's Multilateral Agreement on Investment and almost 2,500 existing bilateral investment treaties, offer too narrow a focus as they address only the rights of the foreign investor. And experience has highlighted flaws in a wide range of areas including in transparency, conflict of interest and clarity of substantive obligations.

IISD's Model Agreement starts from the clear relationship between investment and the achievement of sustainable development. Among other features, it:

The draft is the result of an 18-month process of drafting and consultations, including a high-level experts meeting in January 2005 in The Hague and a launch event hosted by the Commonwealth Secretariat in April 2005. A parallel exercise developing a Southern Agenda on Investment also fed strongly into the process.

The Negotiators' Handbook: The Model Agreement is accompanied by a Negotiators' Handbook (PDF - 706 kb), with article-by-article commentary that draws out the nuances and intent of the text, differentiating it from the current standard approaches and related alternatives. This should be of great use to those countries now negotiating or revising investment agreements, to any future efforts to draft a multilateral agreement, and to all who are concerned about the future path of international law and globalization.

Other work that serves as the basis for this effort includes:

This paper set the foundations for the current draft model agreement, making the case that a broader form of agreement was needed, and surveying past attempts.

This paper looks in detail at the problems with the current models used for investment agreements, based on the experience to date under the BITs and under investment rules as part of broader trade agreements.

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