The Contribution to Sustainable Development of “Megaregional” Free Trade and Investment Agreements,

Megaregional agreements provide for a great opportunity to reform in a more sustainable direction the economic domestic regulatory practices as well as the trade and investment relationships among some of the most influential states and regions of the world. This study analyzes how these agreements integrate sustainable development and, in particular, environmental concerns with their still mainstream economic objectives. To draw a more comprehensive picture, it examines substantive standards as well as institutional and procedural aspects relating to environmental matters in light of their interdependent connection. After describing the main features (substantive scope, normative structure, States’ participation) of so-called ‘megaregional’ agreements, the second part looks at their environmental provisions. The third part considers how these agreements clarify and narrow the scope of substantive standards of investment protection and their effects on environmental matters. The fourth part examines the innovative chapter on good regulatory practices and cooperation and its important implications for environmental protection. The fifth part addresses selected institutional and procedural matters relating to dispute settlement mechanisms and the enforceability of domestic environmental law and other environmental provisions of sustainable development chapters. The final section concludes by showing two trends: a still incomplete “top-down” harmonization of substantive environmental clauses and investment protection standards between the examined regulatory regimes; the second one is an emerging, potentially promising and long-lasting “bottom-up” alignment on procedural aspects and cooperation on States Parties’ regulatory processes.