The Evolution of the Foreign Direct Investment Regime in the Americas

The purpose of this article is to describe the international regime governing foreign direct investment in the Americas and assess its implications for regional economic governance. The article develops a novel methodology to map the multi-layered patchwork of investment agreements according to the level of investment protection offered by each agreement. The mapping exercise demonstrates the existence of two distinct legalization projects in the Americas, one which broadly corresponds to the investment protection concerns of the United States, and a second, overlapping regime, which better reflects the interest of many Latin American governments in maintaining their policy autonomy. The article argues that these distinct visions are anchored in a common dispute settlement system based on binding international arbitration, which tends to harmonize the governance effects of the regime.