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Open Access. Powered by Scholars. Published by Universities.®

2015

International Law

Anca T Muir

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Full-Text Articles in Law

The Use Of The Proportionality Principle To Distinguish Compensatory Indirect Expropriation From Regulatory Measures, Anca T. Muir Nov 2015

The Use Of The Proportionality Principle To Distinguish Compensatory Indirect Expropriation From Regulatory Measures, Anca T. Muir

Anca T Muir

The Investor State Dispute Settlement (ISDS) system has been criticized recently as a way for foreign corporations to counter a national government’s right to regulate. A subject of much of this scrutiny is the compensation requested by foreign investors when the host state needs to regulate for the public interest.

The issue of compensation for actions of indirect expropriation is a controversial issue, especially when the host state uses its police power to regulate in the public interest. When this occurs, it can create a conflict in which an investor claims that his investment was reduced to nothing by the …