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Treaty-Protected Investment Agreements: Of Umbrella Clauses And Privity Of Contract, Raul Henrique Pereira De Souza Fleury

Raul Henrique Pereira de Souza Fleury

Seemingly the most controversial standard present in investment treaties, the umbrella clause have been stressing parties and arbitrators since 2003 when the issue of its scope was brought up in SGS v. Pakistan. Through the umbrella clause investors have sought to elevate breaches arising out of instruments other than the investment treaty itself, such as contracts and legislations. However, the umbrella clause has another feature. Investors have also relied on the umbrella clause to pursue, under the investment treaty, contractual claims with sub-state entities or, to pursue their subsidiaries’ contractual claims with the State. Also, investors have relied on the …