The Regional Comprehensive Economic Partnership’s investment chapter: One step forward, two steps back?

While RCEP negotiations were launched with great ambitions, the tangible outcome is rather disappointing. RCEP’s investment chapter represents two steps backwards. Negotiations are concluded, but India has not (yet) joined the consensus. Moreover, RCEP adds just another layer to the many existing investment treaties in the region which, given RCEP’s investment chapter limitations, remain more important than ever for most RECP investors. No investment claims will be made under RCEP; instead, RCEP investors will rely on old BITs to challenge host country policies. However, RCEP still constitutes a step forward as it creates an investment framework that is tightly linked to trade and that could be refined in the future.