9 From 1995 to 1998, the Organisation for Economic Co-operation and Development (OECD) attempted to negotiate a multilateral investment agreement. However, the negotiations failed after states failed to reach consensus on a wide range of issues. The desire for an MAI was also followed by the WTO`s Singapore themes, which expanded the Trade-Related Investment Measures (TRIMS) agreement. But this has again failed because of the reluctance of developing countries. See Kurtz, Jurgen, “A general investment agreement at the WTO? Lessons learned from Chapter 11 of NAFTA and the Multilateral Investment Agreement” (2002) 23 U. Pennsylvania J. Int`l Econ. L.Google Scholar; Schittecatte, C., “The Politics of the MAI: On the Social Opposition of the MAI and Its Role in the Deise of the Negotiations” (2000) 1 J.W.I. 329 Google Scholar; OECD, “Multilateral Agreement on Investments (President`s Report to The Negotiation Group” (1998) 98 DAFFE/MAI, “www.oecd.org/daf/mai/pdf/ng/ng989fe.pdf k); and Muchlinski, P., et al., eds., The Oxford Handbook of International Investment Law (New York: Oxford University Press, 2008) CrossRefGoogle Scholar. The 2009 Lisbon Treaty focused on a common EU trade policy. The European Union is the sole jurisdiction to negotiate future investment protection agreements under the “grandfather” standard for previous contracts. Each party is committed to promoting cooperation by encouraging and protecting investments made by the other party`s investors.
On September 9, 2012, Canada signed an agreement with China on the promotion and protection of foreign investment (“FOREIGN Investment Promotion and Protection Agreement”). IFIs are Canada`s name for bilateral investment contracts used by companies around the world to challenge public policies or community decisions that affect their profits. Canada`s first FIPA took the form of a single chapter (Chapter 11) of the North American Free Trade Agreement. Because of the extreme protection of NAFTA investments, Canada has paid US$160 million to U.S. companies that have challenged public sector decisions, including environmental policy. Canadian mining companies use IFIs with developing countries to seek damages because of the Community`s opposition to unwanted mega-projects. Article 125, paragraph 4, Article 3, paragraph 4, of the Chinese bit-bit model, states that “Article 3, paragraph 3, relating to the treatment of MFN should not be construed as having an obligation to grant investors of the other party the benefits of treatment, preference or privilege a result of a) a customs union, a free trade area, an economic union and an international agreement leading to such trade unions or similar entities; (b) any international agreement or international agreement, in whole or in part, on taxation; (c) any measures to facilitate small border traffic in border areas.” 140 Cf. CERDS, p. 43, Article 2, paragraph 2, point a): “Every state has the right to regulate and exercise foreign investment within its national jurisdiction, in accordance with its laws and rules and in accordance with its national objectives and priorities.