Download PowerPoint 프레젠테이션 - International Academy for

Investment Treaty Practice of
China, Japan and Korea
Arbitration Academy 2012: Class 1 (July2, 2012)
Professor Hi-Taek Shin
Seoul National University
School of Law
[work in progress: not to be quoted without permission]
Notes
• The powerpoint files are provided to students of
Arbitration Academy 2012.
• As these files are work under progress, no quotation
is permitted without the author’s written permission.
• In preparing the lecture, the author draws upon the
expertise and previous studies by G. Wang, W. Shan
and N. Gallagher (on Chinese practice), and S.
Hamamoto and L. Nottage (on Japanese practice).
However, all mistakes, if any, are the author’s own.
• The author recommends that students review the
most recent data contained in World Investment
Report 2012 released on July 5, 2012
China, Japan and Korea
in the World Economy
GDP: 1,116 billions(USD)
Population: 50 millions
 Beijing
 Seoul
Tokyo 
GDP: 5,869 billions(USD)
Population: 127 millions
GDP: 7,298 billions(USD)
Population: 1348millions
Source: IMF
Base year: 2011
List of countries by GDP(Current, USD)
1
United States
15,094 billions
2
China
7,298 billions
3
Japan
5,869 billions
4
Germany
3,577 billions
5
France
2,776 billions
6
Brazil
2,492 billions
7
United Kingdom
2,417 billions
8
Italy
2,198 billions
9
Russia
1,850 billions
10
Canada
1,736 billions
11
India
1,676 billions
12
Australia
1,488 billions
13
Spain
1,850 billions
14
Mexico
1,154 billions
15
Korea
1,116 billions
Source: IMF
Base year: 2011
FDI Inflows into China, Japan, Korea
and other major countries
(USD millions)
2007
inflows
2008
ranking
inflows
2009
ranking
inflows
2010
ranking
inflows
ranking
United States
215,952
1
306,366
1
152,892
1
228,249
1
China
83,521
7
108,312
3
95,000
2
105,735
2
China, Hong Kong
54,341
11
59,621
8
52,394
4
68,904
3
United Kingdom
196,390
2
91,489
4
71,140
3
45,908
7
Russian Federation
55,073
10
75,002
6
36,500
7
41,194
8
Korea
2,628
66
8,409
40
7,501
35
6,873
32
Japan
22,550
26
24,426
17
11,939
27
-1,251
207
World
1,970,940
1,744,101
1,185,030
1,243,671
Source: UNCTAD
FDI Outflows from China, Japan, Korea
and other major countries
(USD millions)
2007
outflows
2008
ranking
outflows
2009
ranking
outflows
2010
ranking
outflows
ranking
United States
393,518
1
308,296
1
282,686
1
328,905
1
Germany
170,618
3
77,142
7
78,200
3
104,857
2
France
164,310
4
155,047
4
102,949
2
84,112
3
China
22,469
19
52,150
13
56,530
6
68,000
5
Japan
73,548
8
128,019
5
74,699
4
56,263
7
Korea
19,720
22
20,251
21
17,197
19
19,230
18
United Kingdom
272,384
2
161,056
3
44,381
7
11,020
27
World
2,174,803
1,910,509
1,170,527
1,323,337
Source: UNCTAD
Number of BITs
Germany
136
China
127
Switzerland
118
United Kingdom
104
France
101
Egypt
100
Netherlands
98
Italy
94
Belgium and Luxembourg
93
Korea, Republic of
92
Japan
16
0
20
40
60
80
100
120
140
160
Source: UNCTAD, MOFAT, METI, MOFCOM
China, Japan and Korea in Global Network
of International Investment Agreements
BITs
FTAs with Investment Chapter
Entered into
force
Signed /
not entered
into force
Entered into
force
Signed /
not entered
into force
China
100
27
6
1
Japan
15
1
13
0
Korea
86
6
8
0
Source: UNCTAD, MOFAT, METI, MOFCOM
Recent FDI Flows and Stocks of China
(USD millions)
700,000
600,000
578,818
500,000
473,083
400,000
300,000
378,083
0
297,600
327,087
Outward Stocks
147,949
95,799
83,521
22,469
2007
108,312
52,150
2008
95,000
56,530
2009
Outward Flows
Inward Stocks
229,600
200,000
100,000
Inward Flows
105,735
68,000
2010
Source: UNCTAD
China: from Capital-importer to both
Capital-importer and Capital-exporter
China
- the second largest economy in the world
- the second largest recipient of foreign investment
- the fifth in terms of outward direct investment
‣ the current Chinese investment policy-orientation
is to promote both capital imports and capital
exports.
In the late 1970s:
China first adopted the ‘open-door’ policy
• Attracting foreign direct investment (‘FDI’): one of the top policy
priorities in the open-door policy.
– Legislated special foreign investment laws to promote and control
inflow of FDI into China.
– The first BIT: with Sweden in 1982.
• The counter-parties of earlier BITs included Western capitalexporting States (U.K., Italy) and Japan
• The investment policy orientation of Chinese BITs: promote
inward foreign investment
• Very cautious in offering the level of protections to foreign
investors:
– No national treatment commitment
– Only disputes concerning the amount of compensation for
expropriation allowed for investor State arbitration.
In 1998: a ‘Going Abroad’ strategy
focusing on investing abroad
•
A more liberal BIT regime since 1998, after China adopted a ‘going
abroad’ policy.
•
Reflecting China’s increasing overseas investment, the new BIT policy is
set for the promotion and protection of both inward and outward
investments.
•
Chinese Model BIT
– First Model BIT used in 1980s
– Second Version adopted in early 1990s
– Current Version implemented since late 1990s
•
New generation of China’s BIT offers
– enhanced protection standard on expropriation and national
treatment
– All investor-State disputes to be referred to arbitration
China’s FTAs with Investment chapter
Partner
investment chapter
Date of signature
Date of entry into force
investment as part of Agreeme
2004. 11.
nt on Investment of the Frame
(2009. 8. signed th
1
ASEAN
work Agreement on Comprehe
2005. 7.
e Agreement on
nsive Economic Cooperation
Investment)
Between the PRC and ASEAN
2
Chile
no investment chapter
2005. 11.
2006. 10.
3
New Zealand
ch 11
2008. 4. 7
2008. 10. 1
4
Singapore
ch 10
2008. 10. 23
---
5
Pakistan
ch 9
2009. 2. 21
2009. 10. 10
6
Peru
ch 10
2009. 4. 28
2010. 3. 1
7
Costa Rica
ch 9
2010. 4.
2011. 8. 1
Source: MOFCOM
Recent FDI Flows and Stocks of Japan
(USD millions)
900,000
831,074
800,000
700,000
600,000
500,000
680,331
740,930
542,614
Inward Flows
Outward Flows
400,000
Inward Stocks
300,000
Outward Stocks
200,000
100,000
0
-100,000
203,372
132,851
73,548
22,550
2007
128,019
24,426
2008
200,141
74,699
11,939
2009
214,880
56,263
-1,251
2010
Source: UNCTAD
Japan: Traditional Capital-exporter
Japan
- a member of the G8,
and the third largest economy in the world
- the seventh in terms of outward FDI
- ranked 207th in the world for inward FDI
‣ Japan’s investment policy reflected its position as
a capital-exporter
Japan starts to pursue protection of
investment as a capital-exporter after 2002
• Prior to 2002, rather passive in concluding BITs:
– Between 1977 (Egypt) and 2001 (Mongolia), only nine BITs.
• No model BIT
• In 2002, policy shift in international investment treaty practice
– concluded its first FTA (with Singapore, including an
investment chapter) and the pro-investor BIT containing
liberalization commitment (with Korea).
– Since 2002, seven ‘new-generation’ BITs and thirteen FTAs
with investment chapters.
– Japanese BITs seek market liberalization in addition to
protection of investment
Japan’s FTAs with Investment chapter
Partner
investment chapter
Date of signature
Date of entry into force
1
Singapore
ch 8
2002. 1. 13
2006. 11. 30
2
Mexico
ch 7
2004. 9. 17
2005. 4. 1
3
Malaysia
ch 7
2005. 12. 13
2006. 7. 13
4
Philippines
ch 8
2006. 9. 9
2008. 12. 11
5
Chile
ch 8
2007. 3. 27
2007. 9. 3
6
Thailand
ch 8
2007. 4. 3
2007. 11. 1
7
Brunei
ch 5
2007. 6. 18
2008. 7. 31
8
Indonesia
ch 5
2007. 8. 20
2008. 7. 1
9
ASEAN
ch 7
2008. 4. 14
2008. 12. 1
10
Viet Nam
ch 12
2008. 12. 25
2009. 10. 1
11
Switzerland
ch 9
2009. 2. 19
2009. 9. 1
12
India
ch 8
2011. 2. 15
2011. 8. 1
13
Peru
Art 2.3 refers to Japan-Peru BIT
2011. 5. 31
2012. 3. 1
Source: METI
Recent FDI Flows and Stocks of Korea
(USD millions)
160,000
140,000
138,984
121,957
120,000
100,000
80,000
120,441
97,911
117,732
127,047
Inward Flows
94,679
Outward Flows
74,777
Inward Stocks
60,000
Outward Stocks
40,000
20,000
0
19,720
2,628
2007
20,251
8,409
2008
17,197
7,501
2009
19,230
6,873
2010
Source: UNCTAD
Korea: converted to a net capitalexporter, but selectively maintains a
capital-importer perspective
Korea
- a capital-exporting country, seeking more investment
opportunities and greater protection overseas
- a capital-importing country when negotiating with states
such as Japan, the United States, and the EU, which are maj
or sources of FDI into Korea
‣ This dual policy recognizes both the potential benefits of
IIAs in promoting and protecting Korean companies’
overseas investment and in creating a favourable investmen
t climate attractive to foreign investors in Korea.
Until the mid-1990s:
a net capital-importing country
• From 1964 to early 1980s: BITs with major
European capital-exporting countries.
– BITs largely conformed with the standard
models of the respective European
counterparty in an effort to promote private
investment
• Since late 1970s, Korea started concluding BITs
with other developing countries (since late
1980s with transition economies).
After mid-1990s: a net capital exporter
• From the 1990s, Korea’s BIT counterparties: diverse
countries in different stages of economic development.
• Model BIT developed in 2001
• Since 2003, Korea started conclusion of FTAs (first with
Chile) which include comprehensive investment
chapters.
• Korea has FTAs with the U.S.A. and EU.
• FTA negotiation with China has officially started.
• Talks on tri-party FTA among China, Japan and Korea
Korea’s FTAs with Investment chapter
Partner
investment chapter
Date of signature
Date of entry into force
1
Chile
ch 10
2003. 2. 15
2004. 4. 1
2
Singapore
ch 10
2005. 8. 4
2006. 3. 2
3
EFTA
Art. 1.4
2005. 12. 15
2006. 9. 1
4
ASEAN
Agreement on Investment
under the Framework
Agreement on
Comprehensive Economic
Cooperation among the
Governments of the
Republic of Korea and the
Member Countries of the
Association of Southeast
Asian Nations
2009. 6. 2
2009. 9. 1
5
India
ch 10
2009. 8. 7
2010. 1. 1
6
EU
no investment chapter
2010. 10. 6
7
Peru
ch 9
2011. 3. 21
2011. 8. 1
8
United States
ch 11
2007. 6. 30
2012. 3.15
2011. 7. 1
(provisionally applied)
Source: MOFAT
Tri-lateral Investment Agreement
• BITs in place by and between China, Japan and
Korea:
– China-Japan (1988)
– China-Korea (1992, 2007)
– Japan-Korea (2002)
• Tri-lateral Investment Agreement by and among
China, Japan and Korea signed on May 13, 2012
– in the process of domestic ratification process of
each state.
China, Japan and Korea:
Common FTA Partner Countries
(1) Singapore
investment chapter
Date of signature
Date of entry into force
China-Singapore
ch 10
2008. 10. 23
---
Japan-Singapore
ch 8
2002. 1. 13
2006. 11. 30
Korea-Singapore
ch 10
2005. 8. 4
2006. 3. 2
(2) Peru
investment chapter
Date of signature
Date of entry into force
China-Peru
ch 10
2009. 4. 28
2010. 3. 1
Japan-Peru
Art 2.3 refers to Japan-Peru BIT
2011. 5. 31
2012. 3. 1
Korea-Peru
ch 9
2011. 3. 21
2011. 8. 1
Objective (1)
China-Japan
BIT
(1988)
Japan-Korea
(2002)
Korea-China
(2007)
• Encouragement (policy preference)
• Protection
• Liberalization (legally binding
commitment)
• Protection
• Promotion (policy preference)
• protection
FTA Investment Chapter
FTA Investment Chapter
Objective (2)
China-Peru
(2009)
Japan-Peru
(2011)
Korea-Peru
• Promotion (policy preference) (Art. 128)
• Protection
• Liberalization (legally binding commitments)
• Protection
• Liberalization (legally binding commitment)
(2011)
• Protection
China-Singapore
• Promotion
(2008)
• Protection
Japan-Singapore
(2002)
Korea-Singapore
(2005)
• Liberalization (legally binding commitments)
• Protection
• Liberalization (legally binding commitments)
• Protection