An MIA would not see Sample Clauses

An MIA would not see the end of bilateral investment treaties: Proponents of an MIA at the WTO argue that it will free developing countries from having to negotiate a plethora of BITs, in which they will be at a greater disadvantage because of unequal bargaining power. This argument is flawed for a number of reasons. Firstly, there is no evidence that WTO agreements act as a brake on bilateralism. The multilateral system became much more powerful in the 1990s, yet the EU and USA, among others, vigorously pursued new bilateral and regional economic agreements. Any MIA to be negotiated at the WTO would leave uncovered many aspects of investment currently included in BITs, and there would be a continuing demand for bilateral treaties to make up the shortfall. In agreement with other commentators that envisage a continued growth in the number of BITs even alongside an MIA (e.g. UNDP 2003: 251), the World Bank concedes: “In the case of the WTO, the Doha Ministerial Declaration reflects a significantly more-limited approach that clearly does not view a multilateral framework on investment as a substitute for bilateral and regional arrangements.” (World Bank 2003: 127) Indeed, it is very hard to imagine the WTO agreeing to rules which genuinely discourage bilateral agreements by placing a limit on the demands that industrialised countries can make of developing countries, e.g. regarding deregulation.
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