The New Brazilian Cooperation and Facilitation Investment Agreement: An Analysis of the Conflict Resolution Mechanism in Light of the Theory of the Shadow of the Law

Abstract

This article focuses on the changes that have occurred in Brazil's position in the regulatory regime of investments. My main interest is the dispute settlement method adopted in the new Cooperation and Facilitation Investment Agreement, which consists of a preventive mechanism and a jurisdictional method. Using the metaphor of the “shadow of the law” and relying on a comparative data analysis of the South Korean model of investment protection, I explore whether this dispute settlement method represents a stimulus or an obstacle to negotiations. © 2016 Association for Conflict Resolution and Wiley Periodicals, Inc.