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(Photo: OECD)

(Photo: ASEC - Community Relations Division)

AANZFTA provides a greater level of certainty and protection for investors and their investments. The Chapter on Investment describes provisions on the following:

  • Fair and equitable treatment, and full protection and security
  • Non-discriminatory treatment in relation to compensation for losses arising from armed conflict, civil strife or state of emergency
  • Provisions that freely allow transfers relating to covered investments
  • Non-discriminatory expropriation of investments that is done only for public purpose and carried out with due process of law, and receives prompt, adequate and effective compensation

AANZFTA also provides for an investor-state dispute settlement (ISDS) that allows investors recourse to a choice of procedures for settling any investment related issues.

Similar to the Chapter on Services, the transparency provisions of the Chapter on Investment requires publication of any measures affecting investors and their covered investments in the internet. It likewise allows interested Parties to give their comments on any new measures on investment that is under consideration.

Market access commitments of the Parties are part of the Investment’s built-in agenda. AANZFTA Parties have to develop their respective specific market commitments on investments within five years from the date of entry into force of the AANZFTA based on the agreed negative list two-annex approach.

Read the Agreement: Chapter 11. Investment