The new interpretative note on the investment chapter of the FTA seeks to avoid legal abuses and protect the sovereignty of both countries without affecting incentives for foreign investment.
Bolivia was the first nation to begin leaving a legal system that allows foreign companies to sue governments behind closed doors. Now, other countries are following.
This paper summarizes the discussions within the United Nations Commission on International Trade Law Working Group III on the reform of investor-state dispute settlement regarding the two draft provisions on damages.