Australia Hong Kong Investment Agreement

With regard to the most-favoured-nation clause, the situation analysis differs from the ILO by expressly prohibiting investors from asserting their rights, since another bilateral or multilateral agreement entails more favourable rights or obligations. Rights may be invoked only against measures taken by a Party, including measures taken pursuant to another bilateral or multilateral agreement, where such measures are contrary to the most important elimination clause and have resulted in loss or damage to the claimant`s covered investment. International investment agreements (IIAs) are divided into two types: (1) bilateral investment agreements and (2) investment agreements. A bilateral investment agreement (BIT) is an agreement between two countries on the promotion and protection of investments made by investors of the countries concerned in the territory of the other country. The vast majority of AIIs are BITs. The category of contracts with investment rules (TIPs) includes different types of investment agreements that are not NTBs. Three main types of NTPs can be distinguished: 1. global economic contracts, which contain obligations usually found in THE ILO (e.g. B a free trade agreement with an investment chapter); (2) contracts with limited investment provisions (e.g. B only those relating to the creation of investments or the free transfer of investment funds); and (3) contracts that contain only “framework clauses”, such as.B. on cooperation in the field of investments and/or a mandate for future investment negotiations. In addition to AIIs, there is also an open category of investment-related instruments (IRIs). It includes several binding and non-binding instruments, such as model agreements and drafts, multilateral conventions on dispute settlement and arbitration rules, documents adopted by international organizations and others.

The investment agreement contains an investor-state dispute settlement mechanism that allows Australian and Hong Kong investors access to an independent arbitration tribunal to settle disputes for non-compliance with investment rules. The impact assessment offers investors the usual protection that each party grants “no less favourable” treatment to its own investors and investments (Article 4), as well as to investors and investments of non-parties (Article 5) (most-favoured-nation clause). The change in international relations will be important for many. Hong Kong is one of Australia`s largest trading partners and Australia`s sixth largest source of foreign investment. The definitions of “investors” and “investments” are important for the scope of the rights and obligations of an international investment agreement. At first glance, the Fair and Equitable Treatment (FET) clause under the ILO provides that “each Party shall accord covered investments treatment consistent with the minimum international standard applicable to the treatment of aliens, including fair and equitable treatment, full protection and security” (Article 8(1)). . . .

By Tim