Law Commons^™

Mapping Sustainable Development In Investment Treaties: An Analysis Of Asean States' Practice, Mark Mclaughlin

Research Collection Yong Pung How School Of Law

The interaction between sustainable development and international investment treaties is of growing concern. Could investment protection stymie health regulation? Will States be sued for introducing measures to tackle climate change? A growing body of sustainability-related case law is evidence that arbitral tribunals balance investment obligations against States’ ability to regulate for national security, health, the environment, labour rights, transparency, and corporate social responsibility. Against this background, this paper maps sustainable development issues in 371 bilateral investment treaties (hereinafter “BITs”) concluded by the Association of Southeast Asian Nations (ASEAN) States. It finds that only 26% of these treaties make any reference …

Outcome Report Of Roundtable On International Investment Regime And Access To Justice, Michelle Chan, Kanika Gupta, Jesse Coleman, Kaitlin Y. Cordes, Lise Johnson

Columbia Center on Sustainable Investment Staff Publications

On October 18, 2017, the UN Working Group on Business and Human Rights and the CCSI co-hosted a one-day roundtable on the impacts of the international investment regime on access to justice for investment-affected individuals and communities.

Held at Columbia University in New York, the roundtable brought together 32 individuals from civil society organizations, communities affected by investments at the heart of investor-state claims, governments, academia, donor organizations, UN mandate holders, and other stakeholder groups. The roundtable provided an opportunity for participants to: (i) explore and assess the specific impacts of international investment agreements and investor-state dispute settlement on access …

Between Dialogue And Decree: International Review Of National Courts, Robert B. Ahdieh

Robert B. Ahdieh

Recent years have seen dramatic growth in the number of international tribunals at work across the globe, from the Appellate Body of the World Trade Organization and the International Tribunal for the Law of the Sea, to the Claims Resolution Tribunal for Dormant Claims in Switzerland and the International Criminal Court. With this development has come both increased opportunity for interaction between national and international courts and increased occasion for conflict. Such friction was evident in the recent decision in Loewen Group, Inc. v. United States, in which an arbitral panel constituted under the North American Free Trade Agreement found …

The Limitations Of Comparative Institutional Analysis, Sadie Blanchard

Journal Articles

Atul Gawande’s Checklist Manifesto became a sensation in 2009 because it promised that a simple technique could powerfully discipline decision-making. Gawande had saved lives using hospital checklists, and he argued that checklists could improve outcomes in other complicated endeavors. Checklists, he explained, “provide a kind of cognitive net. They catch mental flaws.” Neil Komesar’s method of comparative institutional analysis is by necessity messier than the checklist and does not claim to produce faultless policy-making. But Komesar similarly seeks to improve cognitive processing by imposing a disciplining framework on decision-making. Sergio Puig and Gregory Shaffer’s effort to introduce Komesar’s technique to …

Investment Treaty Arbitration In Cuba, Rafael Cox Alomar

University of Miami Inter-American Law Review

Not since the fateful days of the 1962 Missile Crisis, has Cuba commanded as much global attention as it does today. The 2014 diplomatic rapprochement between the United States and Cuba, not only did away with the last vestiges of the Cold War in Caribbean waters, but more importantly has coincided with a period of acute ideological effervescence in Havana. Even in the face of President Raúl Castro’s resolute commitment to the principles of the 1959 Revolution, it is more than evident that Cuba is in the midst of a transformational moment. And perhaps in no other area of the …

Bilateral Investment Treaties And Domestic Institutional Reform, Richard C. Chen

Faculty Publications

The bilateral investment treaties (BITs) signed between developed and developing countries are supposed to increase the flow of investment from the former to the latter. But the evidence indicates that the existing approach of guaranteeing special protections for foreign investors has only a modest impact on luring their dollars. At the same time they are failing to produce meaningful benefits, these treaty commitments create substantial costs for the host states that make them, exposing them to liability and constraining their regulatory authority. Given this state of imbalance, the time seems ripe for a new approach, but existing proposals for revising …

From Incentive To Commodity To Asset: How International Law Is Reconceptualizing Intellectual Property, Rochelle Dreyfuss, Susy Frankel

Michigan Journal of International Law

The intellectual property landscape is changing. As Jerry Reichman once observed, intellectual property rights were islands in a sea of the public domain until domestic laws expanded to include such “innovations” as business methods, software, scents, and sounds and turned the public domain into a pond surrounded by a continent of rights. Reichman spoke towards the end of the 20th century, and whatever problems accompanied this change, in truth (to paraphrase Voltaire’s view of the Holy Roman Empire), the concept of “intellectual property rights” was predominantly about neither “property” nor “rights” (nor was it always “intellectual”). Rather, copyright, patent, and …

On Territoriality And International Investment Law: Applying China's Investment Treaties To Hong Kong And Macao, Odysseas G. Repousis

Michigan Journal of International Law

To date, investor-state tribunals have been preoccupied with a range of issues revolving around the territorial application (territoriality) of international investment agreements (IIAs). The importance, as well as the various forms such issues take, has recently been highlighted in the decision of the Singapore High Court (SGHC) in Laos v. Sanum. In this case, the SGHC was asked by Laos to set aside an earlier arbitral award (in Sanum v. Laos), filed by a Macanese legal entity and rendered under the China-Laos bilateral investment treaty (BIT). In approaching the matter, the SGHC set aside the award on the grounds that …

Navigating The Expanding Universe Of International Treaties On Foreign Investment-- Creation And Use Of A Critical Index, Julien Chaisse

Julien Chaisse

Practical Implications From An Expansive Interpretation Of Umbrella Clauses In International Investment Law, Katherine Jonckheere

South Carolina Journal of International Law and Business

The right way to interpret so-called 'umbrella clauses' has been debated for over a decade. Interpreted restrictively, these clauses merely reinforce the substantive commitments and protections listed in the remainder of the investment treaties in which they are found. An expansive interpretation on the other hand gives these clauses the effect of elevating purely contractual obligations undertaken by the state vis-à-vis specific investors to full-blown treaty obligations under international law, subject to the investment treaty's dispute settlement provisions. Although an expansive reading seems to have gained considerable ground amongst investment arbitration tribunals over the years, this article will show that …

East Asia, Investment, And International Law: Distinctive Or Convergent?, Beth A. Simmons

All Faculty Scholarship

International investment agreements (IIAs) are the primary legal instruments designed to protect and encourage foreign direct investment world-wide. This article argues that Asia has used IIAs just as much as have other regions of the world to attract foreign direct investment, but that Asia’s pattern of agreement provisions is somewhat distinctive. States in East and Southeast Asia have tended to enter into agreements that strike a balance somewhat more favorable to host states than to foreign firms, at least when compared to the rest of the world. This may be due to high growth in the region, which tends to …

State Control Over Interpretation Of Investment Treaties, Lise Johnson, Merim Razbaevea

Columbia Center on Sustainable Investment Staff Publications

Many critiques of investment treaties relate to concerns that tribunals’ interpretations of these agreements depart from states’ understandings of the texts, and do so in unpredictable ways leading to expensive litigation and unforeseen liability. States, however, can take steps to make their intentions regarding the texts clearer, and reduce the risk of uncertain outcomes.

This policy paper discusses these possible steps, and the legal rules supporting them, providing guidance to states, attorneys, and tribunals regarding the important role of states in clarifying vague standards in and managing liability under existing investment treaties. A second paper, published by the Global …

International Economic Law And The Right To Food, Carmen G. Gonzalez

Carmen G. Gonzalez

This chapter examines the historic and current policies and practices that have contributed to food insecurity in the global South. It analyzes the impact of international economic law on the patterns of trade and production that perpetuate food insecurity, and recommends concrete measures that the international community might take through law and regulation to promote the fundamental human right to food. Part I provides a short introduction to the right to food framework and its implications for international trade, investment, and finance. Part II places the current food crisis in historical perspective by discussing the trade and aid policies that …

Time To Join The “Bit Club”? Promoting And Protecting Brazilian Investments Abroad, Lucas Bento

Lucas Bento

The growing internationalization of Brazilian organizations calls for a greater array of investment protections available to them, particularly as they weave through an increasingly competitive and uncertain global economy. This article argues that the Brazilian government should consider ratifying BITs so as to provide greater protections to its own – domestic – investors.

Exploring The Confines Of International Investment And Domestic Health Protections--Is A General Exceptions Clause A Forced Perspective?, Julien Chaisse

Julien Chaisse

This Article focuses the analysis on the ramifications of the recent investment treaty practice, including “general exceptions” in investment treaties in light of increasing attention paid by governments to tobacco controls. This Article fundamentally tries to answer whether the “general exceptions” clause found in investment treaties can be an efficient tool for governments to develop national health policies. It is an important question, both at policy and theoretical levels, as investment treaties grant significant rights to foreign investors, such as tobacco companies, while many governments are willing to develop tobacco control measures which would echo those enforced by Uruguay and …

The Protection Of Foreign Direct Investments In Developing And Emerging Markets Through The Instrumentality Of Arbitration: Fair Game, Florence Shu-Acquaye

Florida A & M University Law Review

No abstract provided.

Do Investment Treaties Prescribe A Deferential Standard Of Review, Anna T. Katselas

Michigan Journal of International Law

The dramatic rise in foreign investment in recent decades has brought with it a corresponding increase in the number of bilateral investment treaties (BITs) and, in turn, the number of international investment disputes arising under those treaties. Investment treaty arbitration is the predominant method used to settle those disputes and has certain advantages for both foreign investors and host states compared to available alternatives, but it can tread on delicate issues typically within the domaine rieservd of states. The concern about due regard for sovereign interests in this context is far from purely academic. In the past twenty years, the …

Trips And Bits: An Essay On Compulsory Licenses, Expropriation, And International Arbitration, Peter B. Rutledge

Scholarly Works

This essay examines the potential for arbitration to resolve disputes between private companies and developing countries over the propriety of compulsory licenses. At bottom, my thesis is that arbitration supplies the medium through which to mediate the tension between the profit-seeking goals of private multinational companies and the development goals of foreign nations, especially in the developing world. The compulsory license debate raises a clash of fundamental interests between the patent holder, the patent holder’s state, and the host state. Arbitration can play an important role in balancing those interests, albeit a highly unusual one. Arbitration provides an essential forum …

China And Sustainable Development In Latin America, Carmen G. Gonzalez

Carmen G. Gonzalez

China’s growing economic engagement with Latin America has sparked both popular and scholarly debate. Some scholars contend that China is a rising imperial power scouring the globe for natural resources, exploiting less powerful nations, and rejecting international environmental agreements that would curb its profligate consumption of the world’s natural resources. Others applaud China’s unorthodox development strategies and portray China as a model worthy of emulation. This article interrogates both narratives and examines the environmental and developmental implications of China’s rise for Latin America. The article discusses China's bilateral trade and investment agreements with Latin American nations and China's potential contributions …

China's Engagement With Latin America: Partnership Or Plunder?, Carmen G. Gonzalez

Carmen G. Gonzalez

The emergence of China as a significant economic force in Latin America has sparked both optimism and alarm. With titles such as 'The Coming China Wars' and 'The Dragon in the Backyard,' recent books and articles depict China as a rising imperial power scouring the globe for natural resources and as a competitive threat to Latin America. Other studies applaud China’s pragmatic, unorthodox development strategies and portray China as a successful model for developing countries. The competing narratives about China’s rise do agree on one thing: China has become a formidable force in the developing world whose influence merits careful …

Efficient Contracting Between Foreign Investors And Host States: Evidence From Stabilization Clauses, Sam F. Halabi

Faculty Publications

Bilateral investment treaties are agreements between sovereign states that give broad protections to investors and investments made within the jurisdiction of the other state. The prevailing view in the academy and practice is that developing countries sign bilateral investment treaties in order to reassure investors from developed states that their investments will be safe from changes in domestic law. Without these “credible commitments,” investors would be deterred from making investments, depriving developing countries of foreign capital. This Article disputes that view by demonstrating that foreign investors and host states effectively contract around the risk of changes in the law. This …

Private Litigation In A Public Law Sphere:The Standard Of Review In Investor-State Arbitrations, William W. Burke-White, Andreas Von Staden

All Faculty Scholarship

International arbitration and, particularly, investor-state arbitration is rapidly shifting to include disputes of a public law nature. Yet, arbitral tribunals continue to apply standards of review derived from the private law origins of international arbitration, have not recognized the new public law context of these disputes, and have failed to develop a coherent jurisprudence with regard to the applicable standard for reviewing a state's public regulatory activities. This problematic approach is evidenced by a recent series of cases brought by foreign investors against Argentina challenging the economic recovery program launched after a massive financial collapse and has called into question …

The Importance Of Bits For Foreign Direct Investment And Political Risk Insurance: Revisiting The Evidence, Lauge Skovgaard Poulsen

Lauge N. Skovgaard Poulsen

Bilateral investment treaties (BITs) are typically presented as vital risk-mitigating instruments providing foreign investors with “credible commitments” that their assets will not be expropriated, discriminated against, or otherwise maltreated post-establishment. Accordingly, developing countries wanting to attract foreign investment should become more attractive destinations for multinationals when signing the treaties. A great number of studies and surveys indicate, however, that the vast majority of multinationals do not appear to take BITs into account when determining where - and how much - to invest abroad. Apart from reviewing such evidence, this paper discusses the feedback from a series of interviews. Firstly, BIT-negotiators …

Bilateral Investment Treaties And Fdi Flows, Lisa E. Sachs

Columbia Center on Sustainable Investment Staff Publications

Given that one of the principal purposes of bilateral investment treaties (BITs) is to help countries attract investment flows (by protecting investments), it is only natural that the question has been raised whether they do, in fact, lead to higher investment flows. The main studies on this topic from the past decade are collected in The Effect of Treaties on Foreign Direct Investment: Bilateral Investment Treaties, Double Taxation Treaties, and Investment Flows (Oxford University Press, 2009), a volume I edited with Karl P. Sauvant.

The Effect Of Treaties On Foreign Direct Investment: Bilateral Investment Treaties, Double Taxation Treaties, And Investment Flows, Lauge Skovgaard Poulsen

Lauge N. Skovgaard Poulsen

Review of: K. Sauvant, and L. Sachs, (eds), The Effect of Treaties on Foreign Direct Investment: Bilateral Investment Treaties, Double Taxation Treaties, and Investment Flows (Oxford: Oxford University Press, 2009).

Tearing Down The Great Wall – The New Generation Investment Treaties Of The People’S Republic Of China, Stephan W. Schill

ExpressO

The People’s Republic of China (PRC or China) has emerged as the world’s prime destination of foreign investment in the developing world and is continuously strengthening its position as a source of outward foreign investment, notably in Asia and Africa. In this context, the PRC has concluded over 110 bilateral investment treaties (BITs) that grant protection against expropriation and establish other standards of treatment for foreign investors in China and Chinese investors abroad.

While the PRC was originally hesitant regarding international investment protection, the country started, beginning in the late 1990’s, entering into new generation BITs that break with her …

The Emergence Of Positive Obligations In Bilateral Investment Treaties, Joshua Robbins

University of Miami International and Comparative Law Review

No abstract provided.

International Decisions: Occidental Exploration And Production Company V. The Republic Of Ecuador, Susan Franck

Articles in Law Reviews & Other Academic Journals

Occidental v. Ecuador is the first claim under a bilateral investment treaty claim involving tax issues. This case comment analyzes the tribunal's award and offers a critique of both the analysis and the conclusion. This comment suggests that the tribunal may have gone further than necessary in its analysis of arbitrary measures impairing investment, failed to engage in a sector-by-sector analysis of national treatment, and compressed the analysis of separate rights into one broad test for evaluating fair and equitable treatment. The comment concludes that Occidental may best be understood as confined to its unique facts lest there be larger …

Creating An Icsid Appellate Body, Johanna Kalb

Articles

Since the creation of the International Centre for Settlement of Investment Disputes (ICSID) over forty years ago, states have increasingly relied on this body to resolve conflicts in bilateral investment treaties (BITs). In light of such exponential growth in the number of disputes brought to the ICSID, the ICSID Secretariat has proposed the adoption of an optional appellate body to promote "coherence and consistency" in ICSID arbitrations. This comment argues that, given the realities of tribunal decision-making and of the interdependent global economy, states should consider taking steps towards reforming the ICSID system as a way of maximizing their remaining …

International Decisions: Occidental Exploration And Production Company V. The Republic Of Ecuador, Susan Franck

Susan D. Franck

Occidental v. Ecuador is the first claim under a bilateral investment treaty claim involving tax issues. This case comment analyzes the tribunal's award and offers a critique of both the analysis and the conclusion. This comment suggests that the tribunal may have gone further than necessary in its analysis of arbitrary measures impairing investment, failed to engage in a sector-by-sector analysis of national treatment, and compressed the analysis of separate rights into one broad test for evaluating fair and equitable treatment. The comment concludes that Occidental may best be understood as confined to its unique facts lest there be larger …