OECD-UNCTAD-UNCITRAL Investment Treaty Conference: What was discussed and what’s next
On 31 March 2025, a high-level Investment Treaty Conference was held in Paris, jointly organised by the Organisation for Economic Cooperation and Development (OECD), the United Nations Conference on Trade and Development (UNCTAD), and the United Nations Commission on International Trade Law (UNCITRAL). The Conference focused on modernising first-generation investment treaties to support the Sustainable Development Goals with an aim to explore practical avenues for amending investment treaties to foster sustainable development and enhance global economic resilience.
Background: Investment treaties
Investment treaties are instruments of international law concluded between states that establish rules to promote and protect foreign investments in host states. These treaties are considered essential because they include international minimum standards of treatment (e.g. protection of investments against unlawful expropriation or discrimination), which are contained in both bilateral and multilateral investment treaties. The procedural enforcement of these substantive rules is ensured through a procedural provision in the treaty, allowing investors to submit investor-state disputes to international arbitration in derogation from dispute settlement in host state courts.
Today, thousands of investment treaties exist between countries worldwide. China, France, Germany, Switzerland, and the UK are among the nations with the largest treaty portfolios. The global proliferation of investment treaties suggests that their protection standards have gained a significant degree of acceptance across much of the world.
Conference themes and discussions
The OECD and UN noted that over 2,000 investment treaties currently in force were concluded during the 1980s and 1990s. Against this backdrop, the Conference focused on four main topics.
Session 1: Benefits of investment treaty modernisation
The Conference highlighted the importance of a stable legal environment for investments and evolving priorities. It was noted that investment protection under investment treaties remains crucial, with a growing consensus on the desire to promote sustainable investment and attract private finance for climate-friendly projects. Speakers stated that clarifying investment protection, the right to regulate, and enhancing the predictability and transparency of investor-state dispute settlement (ISDS) might be beneficial.
Session 2: Joint objectives and efforts
The second discussion emphasised the value of collective action and cooperation among international organisations in amending older investment treaties, particularly regarding the coherence of treaty provisions and overall efficiency. It was also noted that greater involvement from non-governmental stakeholders is needed, and that some countries may require assistance throughout the process. Work programmes on investment treaties hosted by the OECD, UNCITRAL’s ongoing ISDS process, and UNCTAD’s investment policy initiatives were highlighted as contributors to these efforts.
Session 3: Trends in design and content of investment treaties
In the discussion on recent trends in the negotiation and conclusion of new bilateral and multilateral investment treaties, it was highlighted that these developments reflect a shift toward incorporating provisions that promote sustainable investment, as well as the inclusion of treaty clauses addressing investment legality and environmental concerns. Reaching a global consensus on the content of investment treaty provisions may be challenging, however, due to varying national priorities and capabilities.
Session 4: Implementation and practical considerations
The final discussion identified practical steps for achieving potential investment treaty amendments. Various avenues were explored, including the issuance of joint-treaty interpretations, plurilateral modification instruments, and UNCTAD’s technical assistance for developing countries, as well as multilateral consensus-building efforts. The discussion included references to amendments of double taxation treaties and the Multilateral Instrument on Base Erosion and Profit Shifting (BEPS) as a tool to help countries adopt the OECD's BEPS recommendations.
Comment
The Investment Treaty Conference did not conclude with a single, unified agenda. Instead, it served as a platform for dialogue for stakeholders, including policymakers, legal experts, business leaders, and civil society representatives, to discuss the evolving landscape of investment treaties and explore potential avenues for enhancing the international investment protection system, the importance of which has been reaffirmed. The Conference emphasised the value of continued dialogue and collaboration among international organisations, as well as between public and private stakeholders. These discussions are likely to inform ongoing conversations about investment protection instruments at both the global and local levels.
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