Quest for a Sustainable International Investment Regime: Leveling Up Through Competition (Policy) Rules?

Abstract

Competition (policy) rules are ubiquitous as well as an essential element of the legal and institutional framework for the global economy. It is widely recognized that, linked to inclusive and sustainable development, they can best harness foreign direct investment (FDI)’s potential benefits as drivers of economic transformation. Against the background of politically regressive skepticism and growing protectionist retreat from the institutionalized and rule-based liberal practice initiated after the Second World War, this article seeks to retrace the role, utility, design, and interface of the legal regimes governing trade, investment and competition, at the national level and as main pillars and governance ideas of global economic law. It also documents international cooperation in the field of competition policy, as well as proposals for and failed attempts to establish multilateral rules, for trade and FDI. The article concludes with a plea for such rules in an effort to redress existing worldwide inequalities.