Abstract On 25 February 2024, the final text of the Investment Facilitation for Development (IFD) Agreement was released, marking a pivotal moment in the reform of International Investment Law (IIL). This article examines the trajectory of IIL through the lens of three distinct phases – investment protection, liberalization, and, now, investment facilitation – arguing that this latest phase represents a ‘third configuration’ of the field. While past reforms have struggled with legitimacy crises and governance limitations, investment facilitation introduces a ‘risk-capacity’ approach that prioritizes trust-building, regulatory coherence, and sustainable investment governance. By analyzing the well-designed mechanisms of the IFD Agreement, this article demonstrates how investment facilitation transforms IIL from a power-driven framework into a capacity-enhancing system, reducing its marginalization and fostering inclusivity among World Trade Organization (WTO) members. Finally, this study outlines potential next steps for the IFD Agreement, emphasizing its role as a blueprint for future multilateral investment governance.
Zu et al. (2025) studied this question.