Controlling treaty shopping: A viewpoint from international investment agreements

Abstract

This article aims to identify provisions in international investment agreements (IIAs) that may facilitate investors in engaging in treaty shopping. In addition to examining IIA provisions, the article also reviews several notable investment arbitration rulings to strengthen its arguments. Through this analysis, the article proposes solutions to prevent treaty shopping by investors, protecting the interests of host countries. The research findings indicate that five provisions in IIAs may encourage or enable investors to pursue treaty shopping. Therefore, to mitigate risks associated with this practice, countries should review the provisions in their existing IIAs and amend the wording of such provisions in future agreements to limit frivolous claims.