The Global Rise of Investment Screening Mechanisms

In the last decade, there has been a sharp rise in the establishment of investment screening mechanisms. Although several recent studies have been dedicated to identifying the main factors driving the rise in investment screening mechanisms, few studies provide a truly global or historical picture. Most studies focus on the growth of investment screening mechanisms after 2020. This paper goes beyond recently published studies by investigating the foundations of investment screening mechanisms and establishing that while new developments appear unprecedented, investment screening mechanisms are as old as modem international investment law. It traces the key trends that have existed since the 1950s and classifies these mechanisms based on domestic investment laws and the activities of investment promotion agencies. It links key developments over the last seven decades to important milestones in the history of international economic law and the investment treaty practice of states.