Abstract
This chapter examines a number of legal developments which have shaped current approaches to the treatment of foreign investment. It first examines the Foreign Investment Review Act Case, a pre-Uruguay Round GATT dispute between Canada and the US, which throws into sharp relief the ideological debate over the role of the state in the regulation of foreign investment and the relationship between foreign investment regulation and trade disciplines. The chapter then looks at the foreign investment implications of the Uruguay Round Agreements, in particular Trade-Related Investment Measures which clarifies the relationship between GATT and the regulation of foreign investment, General Agreement on Trade in Services, which concerns market access for and treatment of service providers, and the Trade Policy Review Mechanism, the World Trade Organisation (WTO) mechanism whereby the trade policies of Members are subject to regular scrutiny by other WTO Members.
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