FREE trade agreements (FTAs) have been receiving considerable attention recently. Even as investors explore opportunities ushered in by the new trade pacts, it is essential that they understand what provisions exist in these agreements to protect their investments, and the potential recourse they have in the event of a breach to such protection.

We look here at how investors are protected under FTAs, using the Asean Comprehensive Investment Agreement (Acia) and the Trans-Pacific Partnership (TPP) agreement as illustrations. The Acia is a key part of the Asean Economic Community blueprint, and took effect on March 29, 2012. It offers protection to eligible investors and investments in all business sectors. The TPP is a comprehensive trade agreement among 12 Pacific-Rim countries and protects investors of one TPP state in another TPP state.

Investor Protection