Karl P. Sauvant and Louis T. Wells, “Obsolescence of the Obsolescing Bargain: Why Governments Must Get Investor-State Contracts Right”, Columbia FDI Perspectives, no. 298, 22 February 2021; also available here in Chinese.
Abstract
Gone are the days when governments could easily renegotiate natural resource and other investment contracts if foreign investors, e.g., reaped bonanzas from rising resource prices, surprisingly rich discoveries, or terms that were too favorable. Today, international investment agreements protect investors from renegotiation if they do not wish to do so. Hence, governments must get initial contracts right, including providing for possible future events.