ABSTRACT
This chapter analyses the Trans-Pacific Partnership (TPP) document titled ‘Investment’. Its main purpose is to clarify the obligations of the TPP parties on the liberalisation and protection of foreign investment so that member states of the Association of Southeast Asian Nations, which are parties to the TPP, may prepare domestic legal reforms to meet these obligations when the TPP enters into force. Investment means every asset that an investor owns or controls, directly or indirectly, that has the characteristics of an investment, including such characteristics as the commitment of capital or other resources, the expectation of gain or profit, or the assumption of risk. Modern investment treaties provide for subrogation of the claims of the foreign investor in the home state. This enables the home state to take over the investor’s claims against the host state after paying the claims through the investment insurance or guarantee schemes run by the home state.
