January 27, 2015
The free flow of investment is a key component of the ASEAN Economic Community (AEC). Higher levels of investment between ASEAN member states will increase the likelihood of disputes arising between private investors and governments. In response, the ASEAN Comprehensive Investment Agreement (ACIA), a multilateral treaty that provides the legal foundation for the AEC’s liberalized investment regime, establishes an investor-state dispute resolution mechanism (ISDR mechanism).