INTERNATIONAL INVESTMENT LAW

INTRODUCTION:

Foreign investment is necessary for development of economies in a globalised world. However there
remains an ongoing tussle between foreign investors and the host states regarding the extent of
protection that a host state must afford to such investors considering every nation has the right to freely
exercise its regulatory authority on entities within its jurisdiction. Compelled by the need for foreign
investment, States have signed growing number of Bilateral Investment Treaties agreeing to offer a
number of protections to foreign investors.

The past few decades have seen an increase in the number of bilateral investment treaties and other
treaties with investment-related provisions, followed by a rise in the number of disputes between
private investors and sovereign states. However, with the new Indian model BIT, it seems that India is
not yet ready to give up the exercise of its sovereign power and national interest in name of investor
protection. Hence in this backdrop the study of international investment law becomes all the more
relevant.

MODULE 1: GENERAL INTRODUCTION

 Growth of International Investment Law

 Sources of International Investment Law
 Customary International investment law and treaty based investment law- Bilateral, Regional (NAFTA,
ASEAN), Multilateral Investment Guarantee Agreement (MIGA)
 Economic Theories relating to foreign investment

MODULE 2: MEANING OF INVESTMENT AND FOREIGN INVESTOR

 Foreign Direct and portfolio investment

 Meaning of investment under ICSID
 Meaning of Investor: Whether Shareholder investor?
 Determination of nationality of foreign investor: Natural Persons and Corporations

MODULE 3: EXPROPRIATION AND COMPENSATION

 Direct, Indirect and creeping expropriation

 Determination of Compensation

MODULE 4: PRINCIPLES OF NON-DISCRIMINATION

 National Treatment: Like situation, necessity of intention to discriminate, support to domestic

industry as discrimination
 Most Favoured Nation (MFN) Treatment: Jurisdiction of international tribunal on the basis of MFN
clause, Substantive protection of MFN clause

MODULE 5: OTHER PROTECTIONS TO FOREIGN INVESTORS

 Full protection and security

 Fair and Equitable treatment
 Umbrella Clause

MODULE 6: ADJUDICATION OF DISPUTES

 State vs. State dispute: diplomatic protection

 Investor vs. State dispute: UNCITRAL and ICSID

Module 7 - GENERAL EXCEPTIONS

 What are the general exception clauses in BITs
 What is the significance of having such clauses in BITs

RECOMMENDED BOOKS

1. Christoph Schreuer and Rudolph Dolzer, Principles of International Investment Law.

2. Muthucumaraswamy Sornarajah, The International Law on Foreign Investment.