Investment Liberalization, Regional Trade Arrangements

These days there is a trend for regional agreements or RTAs to develop and enlarge a lot. The number of RTAs increased sharply, so do the content they cover. This paper basing on the theory of RTAs cooperation frame, aims at making analysis on the most significant legal issues in the RTAs, like definition of investment and investor, market access, performance requirements, investment treatment, expropriation and nationalization, as well as the dispute resolution etc. Meanwhile, this paper makes comparison among the typical RTAs like NAFTA, APEC and ASEAN, and the multinational investment agreements like GATS, TRIPs and bilateral agreements on the investment. According to China's reality, it concludes its own suggestions and opinions on China- ASEAN and CEPA, in order to explore the best frame for China to go on with RTA negotiate in the 21 century.When make definition on the investment, the portfolio investment is suggested to be included. The scope of investor is defined include both artificial persons and natural persons. On performance requirements, it suggests eliminate the performance requirements gradually but with some conservation in certain area. When analyzing the national treatment, this paper holds the opinion that it should adopt the after-establishment national treatment, and it must qualify the host country's laws and regulations. However, as a special RTA, CEPA can be given full before-establishment national treatment step by step. For the fair treatment, this paper suggests to define it as non-discrimination treatment and take it as non personal claim issue. As to expropriation and nationalization, this paper suggests making reference to our sovereignty principle, that is, no expropriation and nationalization in general, while in special circumstances, the government can execute expropriation and nationalization according to the law procedure and compensate under "reasonable and proper". Finally, to the dispute settlement, this paper suggests adopt two set of dispute settlement system, one for disputes between governments and the other for the disputes between investor and host government.