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IISD Best Practices Series: Registration and Approval Requirements in Investment Treaties

Countries can have a variety of reasons to include registration or approval requirements for investment in their treaties.

Some may wish to include such requirements to ensure treaties are consistent with domestic law, others may desire to have an overview and know in advance which investments are covered by the investment treaty, thereby increasing clarity and predictability.

Finally, registration and approval requirements can serve to ensure quality control.This paper analyzes registration and approval requirements for investments in investment treaties, and examines the interpretation of such provisions by arbitral tribunals. In addition, it provides concluding remarks and recommendations for states contemplating the use of approval or registration requirements to achieve chosen policy goals.