Towards the

construction of an
international regime
of foreign
investment
protection
Toward the Construction of an International
Regime To Protect Foreign Investment

JUAN ESTEBAN ACEVEDO ZÚÑIGA

ALEXANDRA CASTRILLÓN VILLADA
EMILLY LISBETH CASTRILLÓN GONZÁLEZ
LAURA ISABEL GALLEGO SANCLEMENTE
ANA ISABEL SÁNCHEZ TEJADA
 introduction
The international investment regime has evolved
through various agreements and the active participation
of countries. Currently, it faces criticism, especially from
developing countries, about its effectiveness and
fairness. Practices and rules have been established to
protect foreign investment, backed by bilateral
agreements and free trade agreements. Despite the lack
of a specific multinational organization, the regime has
gone through several stages and there is intense debate
about its future and relevance in the current context of
globalization. A balance is sought between protecting
the rights of investors and respecting the interests of
host countries and their citizens.
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Conceptualization of
an international
regime
The conceptualization of an international regime is essential to understanding
how interactions among actors are organized on the global stage. Introduced
by John Ruggie in 1975 and developed by Stephen Krasner in the 1980s, an
international regime is composed of principles, norms, rules and procedures
that guide the expectations and actions of participants in a specific area of
international relations. These elements are fundamental to delimit, control
and regulate the actions of the participants in the regime, promoting
cooperation and stability. International regimes can be classified according to
their scope, subject matter and formality, covering areas such as trade,
environment and human rights. In short, the conceptualization of an
international regime provides a normative and procedural framework that
facilitates cooperation and coordination among states and other actors on the
global stage. Page 04
 First stage: Debate and
disagreement regarding the
implementation of an
International Trade
Organization

The first stage in the evolution of international regimes,

characterized by debate and dissent against the
implementation of the International Trade Organization
(OIC), represents a crucial period in the history of
international relations. In this extensive report, the key
aspects of this stage will be delved into, analyzing in detail
the actors, conflicts, positions and consequences that
marked this moment of transition in the field of
international trade.
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 First stage: Debate and
disagreement regarding the
implementation of an
International Trade
Organization

This stage takes place in the post-war context, where

world powers sought to establish a regulatory
framework to regulate international trade and
promote economic cooperation between States.
Significant tensions arose between developed and
developing countries, as well as between advocates
of free trade and those advocating greater
protection for foreign investment.
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Second Stage: Consensus and Rise
of Investment Promotion and
Protection

In the second stage of the international investment regime, which

runs from 1989 to 2000, there was a global agreement on the
importance of Foreign Direct Investment (FDI). Developed countries
supported rules to protect it. Many bilateral and trade agreements
were signed to protect FDI, in contrast to the previous stage.
Developing countries were disappointed by the poor performance
of their planned or protectionist economies, so they sought to
integrate more into the market economy.

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 key elements of the
second stage
NAFTA (North American Free Trade Agreement):
Trade agreement between Canada, the United States
and Mexico, signed in 1994. It included an extensive
chapter on investment that established protection
rules for foreign investors and sought to encourage
investment among member countries.

Essential components in bilateral investment and

commercial agreements such as:
The scope of the agreement
Opening of sectors
Dispute resolution
Investment protection

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Third Stage: Criticism of the
investment protection
regime

This stage addresses the way in which countries manage

international investment agreements, which has undergone a
remarkable transformation since the turn of the millennium,
instead of passively adopting the neoliberal model of
investment protection, there is an emerging trend towards a
critical examination of its effects and an active search for
alternatives that balance economic interests with social and
environmental ones.

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 Third Stage: Criticism of the investment
protection regimekey
This shift in perspective reflects a more
This more balanced approach
nuanced understanding of the impacts
to investment agreements
of foreign investment and the urgent
involves closer scrutiny of the
need for more equitable and sustainable
clauses and mechanisms
policies, because instead of favoring only
included in these agreements,
the interests of foreign investors, in order to ensure that they do
countries are recognizing the not undermine national
importance of safeguarding other interests or sustainable
fundamental aspects of society. such as development goals.
the environment, labour rights and
legislative sovereignty.

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 1 The international 2 However, this expansion
investment regime has
evolved significantly,
shifting from primarily
protecting foreign
investors to addressing
broader concerns like
environmental
sustainability and human
Conclusions rights.
3 4
Striking a balance
between safeguarding
investors' rights and
respecting the interests
of host countries is
crucial for ensuring
equitable and
sustainable economic
development globally.
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has faced criticism,
particularly from
developing nations, which
argue that it
disproportionately favors
transnational
corporations, limiting the
ability of host countries to
protect their economies
and populations.
The future trajectory of
the regime depends on
the capacity of
international actors to
address the concerns of
all stakeholders and
devise fair solutions that
foster global economic
growth.
 THANK
YOU
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