Costs and Benefits of Investment Treaties: Practical Considerations for States

Lisa Sachs, Lise Johnson, Brooke G├╝ven, Jesse Coleman
Content Type
Working Paper
Columbia Center on Sustainable Investment
This paper analyzes the expected benefits of investment treaties, including: increased inward investment, increased outward investment, and depoliticization of investment disputes. It then considers evidence of the costs of investment treaties, including: litigation, liability, reputational cost, reduced policy space, distorted power dynamics, reduced role for domestic law-making, and uncertainty in the law. The authors set forth practical steps that states can take relating to both existing treaties as well as future treaties with an objective of increasing desired benefits and decreasing unexpected and high costs of investment treaties.
Treaties and Agreements, Law, Legal Theory , Investment
Political Geography
Global Focus