Principles of International Investment Law RUDOLF DOLZER AND CHRISTOPH SCHREUER OXFORDie gm ‘sem aa | Gstitepni xnihovesa | roils fokully MU eas f tbe bs Foreword “The cent stat ofirnatonlinvesrmen wi shaped and characte by ‘he texts of nesnen reat byrling of inecntonlinvesien buna aby rules genera iterations wien the enh key saad i down'in cea, sudh as Brand equitable etme mest equal 0 ‘expropriation’ ts nstral athe nerpeaton dps ee clases willbe cena forth undersadingo these sandard i pata othe ‘olution ofthe team general Athens on thes casera only “olen the shore period af abou decade wii 1 oneal yer, slementsofheteognsy ale deserve acenton, Tn ths cst seg fh a, she sche hae cove, tidy and surangemant ofthe Bad cero provide mast spin of he subject Inatealog then European eens rms presen sequence sass in thestleafcommon la cuebook. The sim of th book sma ‘lular the meaingf he ene principles tht gone cutn freip ines ‘nen iw. Ths penis orm hontai baste ook thei ‘postion in det enter more onthe catety-ce are th ving jt dence dhanon a eamprchaive systematic aly The Deiget Foundation Leck, Germany bas generously ported saya Yale Law School daring which Rodel Dele work on the mance At Boon Univer, Andsé wn Wale and Jin Wel roid valuable rere Doi Gass and Helge Drosardonnne the mans, At Vienna Univesity, Clara Rene lp wit he protending ute ‘em Chrisp Scher VomSummary of Contents TibeofCass Tale of Brewis, Consent, Relainy end Raker Lief Abbrencions 1, Narat, olan, and Contes of nenaioalavesement Law Invenatonllvessmen Law asa Feo Sry The Basoese Nate fs Feige ‘Long-Term Rik oe State Soverignty ad the Rae of orig Ivesen 4 Gastar Inensional Lave The Fnergence of Minima Sadr Treaty Law: Brolin and Purpose Garren Tree in Tey Practice Regional pteement: Energy Chart, NAFTA nay 1, zerpreation and Applicsion of ives Teter 1 Intexetnglvetment Teste 2. Applies of imesent Teas in Tine ML, avers and vestments 1 Ioyeseons Individual Companies, Neon and ‘Shara 2. levees IN. Investment Contracts 1 Typeoflavesemene Contacts 2. Apple Law 5, Seliation Clases 4 RenegoansAdaptaton ‘Adsistion and Etabishonent 1. The Move towards Ecogomic Literal 2: Tieay Modelsof Admission 3, Perfomance Requlements 4 Nom Compe by Investor with Hox tate Law sd nernaional Pai Plcy a n ey Ba Sao of Cont VI. Expropriation 1. The Right to Expopie 2, The Tie Brancher the Law 3, The Legale ofthe Exprepeaion 4 Direct Inder Expropion 5, Rxgropatin of ConeactalRighes VI. Standards of Protection rand Equitable Tetment Fal Pesecton and Seca The Untelslase ‘Accor tice, Fis Proedae and Denil of utice Emergency, Necsiey,Armed Cones, and Foe Maer Precraton of Right Arar er Disetinatary Messe: Nari Tresent Mow Freund Nation Tete 10, Trader Funds VII. Sate Resposilty and Astibation 1. Orga, roviaces and Muniples 2 Sates 3: Pan Stuur Consent Subdivons or Ager sander dhe ICSID Convention 1X, Pala Rik Insurance ing Lavenment Disputes x. Se 1, State Sate Dipures, 2. Ino Sete spre 1. Conmentin onthe Sette Invent Digpates etre tater at Nationals of Other Ses. AUCSID Convention) Marc 165) Energy Chater Treaty Par, V) (December 1954) Noth Armercan Fre Tide Agen (NAFTA), CChapeerXI (Decree 1982) 4, Ageament ewer he Pope's Repu of Chine anuhe Goverment of. Jon thePromodon snd Proton oflavesncts Chinese Model BIT) 2003) ® oo 0 3 as 1 ng us 133 tea 166 m 3 i 186 181 195 195 198 07 0 2M 2 3M 0 3 Inder Samar of Caen Accu enrle Gouvernement dele Republique Feng ct. le Governement de uel Encouragement ta Prsion [Rcgeogus der nverierents (French Mol BIT) (2006) “Treaty ewe he Feder Republcof Geman ad.) Concerning the Ecouraemen and Reipol Poston flava German Med BIT) 2003) Daa grecmert ernen the Goverment of che Unie Kingdom f Great Brain and Nether rand anu he Government forthe Proton ud Protection of loves (UK Mosel BIT) (2005) Treaty beeneen the Government ofthe United Sates cf Amer sadth Govemnmene af] conceing {Be Encouragement and Reciprocal Potaon flnvemenr (US Model BIT} (2000) 360 368 376 35 4aon, Contents Tableof Cee Taleo Tati, Coneon, Relations and aes Livof Abbess 1. Nature raat, and Comet fete sional avestment Law Toceratonalvestnent Law sa Fic f Seay The Boies Naru of orig Tavennent ALongTem Rik Hos Sta Sorecignry andthe Rules of Foriga Iavesenene Canny Ineradonl Law: The Emergence fs Minion Sear Treaty Law: Boon nd Purpose aren Trndein Tray Psie Regional Apemenc Eacrgy Care, NAFTA, 1 Imerpeetation and Applicaton of lnvesemen Teter 1. Inerpesog lave Tees (a) Methods Tey eee (6) Tian Praris (a) The Ahoy of Treen (©) Towanda Cres Un fata Application of lvestment Teter ia Tame 3) er Temporal Aplion ree in Gent (Diet ne eo Rardin nl Sar (© TheDste Reeanee Dernier (@) Raden Dirac te CID Come (@) leTemporl Relea Other Teas 1M, tavestor ad Lvetmente Investors Individual, Companies, Nadoaal snd Shareholders (0 Piva orga Lnenen, (Neonat lde (6) Neal of Cope ll 46(Arie 22) te ESID Comenton: genet oes Tova Gompuy sa Fags Natal ec of Frey Cal (@) Neosiy Manning Denil Benes (9 Shuchldeaaeas lnvesnent (0) The Conc ofan ovement (0 Det nove rin Tete © Coclan 1X, lamest Conese 1. Typesoflovenmene Contacts 2, Applicable 5, Silicon Clauses 4. Reneotiation/Adapttion \V. Admision and Exabshment 1, The More omar Economic Litera 2, Treaty ModclsofAdmision 5. Performance Requiements 4 Non-Conplinc by Iovetor wih Host Sate Loy 2nd Teena Pai Pey Vi. Expopriation 1. The Right to Exproprine 2. The he Bracher ofthe Lave 3, The Legality ofhe Fapropeaion 4, Direrand lice Expropeaton (9) Boa oem: Th Suen ed Ein (8 Jul an Atl rcs Se rate Cae. (0 Bornes? (6 Leime apecttons (0 Tela of Coal ac Epes 8 Gov Nr 1 Coping pope 5, Expropritionaf Contractual Riss VIL, Standards of Protection 1, Fairand EqutaleTeamene (Hirth Cone (8) Here fT Langge 6 @ n 2 B » » a ra ” ns uy Cons (@ Newreant Fascia (0) and Equa TeencandCaromary ners Law (0 TheBoion fce seand uta Tremenda (7 Avenpee Dein Fiand Eau Tcmne (@) Mahone Ise (Spx Appa he rand Equa Temen Sand 25: Tranny enya tbe Peston te ears Ln pec th, Cinplance th Creracua Oligaons aGana ‘Freda om Coach na Haren © Coca Full Pezeaa and Seca 6) Concpe (6 Proton inc Mca Vile and Haas (9 Lap Prcon @ Retonaipeo Cuore The Unies Clane Aces Josie, Fis Procedure and Denil foie Enexgency. Newry, Armed Conic an Fore Majeute (9) Conor lenin Law (6 Tense (@ Tel Arion Su Repostly ik Reese Proeration of Rights ‘Abita er Disriinatory Meares fa) Thedeanng ef Arr Mee (8 RekonhipFasnd Equa Tismen ane (© ThedeaningefDetininary Mesa. National Teste 6) Gana Mening (apiece ete Jeon the Doetton? Ab Theor of Dnt (© The Reine WTO Cae Law Mor: avoir Natio Tse (a Ina (6) Vatoec MEN ChassConn (Meth ofosyecuion (ooking Scan Rig (9) Curent he Lw 10, Trane of Funds VII, Sete Response and Auribtion 1. Organs, Provinces and Mankplises Seve Or (8) Previn and Municaitn Sue Enes (0 Taleo Satin (9 Sct anton, od Cat {0 Jada Pc on Abn {0 Sate Rspnsby fr Fares Pt |, Pany Saat for Coen Sibvisons or Agencies ‘ner the CSID Consenton 1X, Pola Rik Insurance X, Seting Investment Disputes 1, Ste State Disps Dipl Pron (8) Dir pub Sees 2. Investor y Sate Dips (9) TheRaleefDameisCaure tm The imi Uae of Domenic Court & Repent nDoes Core (Arba so Cacllon (@ Artanis and Regie: Se. NowlCSID etme Ai 1 Th longa Camber of Comme i TheLondn Curoflnoaal Arbraon i UNCTTRAL Ral i The in Unie res Chins Tidal "Tae Fomanens Cau Ata 1) Theses Maver abe Dap arin Rate Mari) SK Tega Nao Dipene © TheDiecemn fthe Dp Reason th Inet 1 195 195 98 bo 20 aI Comins 4b Thelma (@ Thetarir the Dope uicon Rae Poa) At Testa of he Ai (6 Canute tien St Comer y Diet Agent 3 Cont trough Het Se Leptin Cone hgh stl ere Tees 1. Gan hog Maller Tree fe. TheScpeaf Conca Pcs Conoe 9 Const sp Themen of Cost (Th Agony of MON Ch Dae Seeman (hve {Provan Meares ( ApbenleLan (h Damapernd Conpenion { Cone (mn) Chalngeand Review fDson, 1a, Fale Rene Remit Nee Tal ce Stplenneonsnd Reenter 4a ‘merpeeate user CSID Comes (6) Eoheeoenta Awad Conve on the Seem of lveemene Digs [ere Sater an Nationale of Other Sates, AICSID Consens) (March 1965) Enea Charter Teaty (Par, V) (December 1998) [Nort American Fee Tad Ageeent (NAFTA), ‘Ghaper XI (December 1992) “Agrerment Bewce he Pope’ Repalicof Chia srt ‘heGoremmenrof[.]on the Promotional Prion ‘oF lestmens (Chinese Model SIT) 2003), > 3M 30 32Index Content Aso ent le Gousernement dela République Fanpaieet Je Gowvernement de su Encouragement tla recon Réjoesdesnveinements (Hench Model BUT) 2006) Treaty beeen the Federal Repl of Germany ad [| CConciningshe Ecouraeren and Reciprocal Potion tl inestents(German Medel BIT) 2005) Dra Agroomenrbermen the Governmeneo the Unie Kingdom of Grea Bran and Noes eld sndthe Goveromentof rte Promotion tna Protctin of Investments (UK Medel BIT) 2005) “Treaty betwee he Govern ofthe United Stats st Amen andthe Government] corning th Encouragement and Reciprocal Proecion ‘lovemene(US Mod! 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A Tan Gate Me era Aci 3a USC To ep 38. i “ec Denn Dar Ps Tics se 99 17 junk Daca eID Ryo jal ence, Ot ace gga nary 2005,9 10S Rp 8 a0 tied hte eek Cp Sens Cnt Bei eugeibe ine cancion"? ees aaa wi Tile of Cs sai cn Sak Gham Dono Fons Mens ae 198 ‘eH Fy Ds an 1D 3a ast 0 ens ep Don nip 3 csr 365 Sue i on Paes on eas ce awTable of Treaties, Conventions, Resolutions, and Rules | | } | |ma Tle Ti, Consens, Rel Rus a Neil a Ot 63 1S Cm “ 08-6284 o fie Rede a Tile Tre, Conventions Rolain nd Rae | cement oii ial oa 8 ss Neti met porn ° agreed Sue ath “ Shae Noi =Tables Tet, Conenton, Bains ad Raker sn 3 io -Afbican, Caribbean, and Paci Stes Tray 2000 lel ro aaah ° trod wo Takeo Tales, Coetions Rett and ale, Scnteaw % gn ei pi pn ipo ai wae | chai gis sad 3dd ae Tule) a kia ae ma 7 ‘s =Tale Testi, Cmrentions Rehan, and ale eines ae ame : dio ual asia Ti ign Diet i982 | " ore " ee = ice : eciaem : Table Tati, Conventions, Reais, an Rae | Tey lee Gn Bn ad he 4 etn Co ri ion i 8 se i in ig pat coi Seta Ct aa con eis ee Hi iii a8swwri Taleo Tat Comenions Ration and aes ee i ee “it > eis 3 sesame omen . Tahlof Tai, Comenion, Ratton nd Baler Becta i Es ‘nied Kingioor-Argentine BIT 1990 “ iii ai ‘ied Ni ein on ain mai od = fee Seen Rn ae SS 2 a es emir Ra ae soc sciegitlt eu a (Gd Soe Med BF a rey tsew Tle Tran Comonins Ration and ues 3 % si a ‘i Sc cg icy ing Esp ane ved ne od it en Se on neo Osea FCSID Come) WHO osc Comin ic Ba pn Wo ga 304 2 lef Ta, Convention, Rois, an Rae Une non mney 7 BUS} ou) ao ‘Und Ses Reet Thi of he Foie Rls a ‘onList of Abbreviations inl ay Are Journal flo La Praetng ofthe Ameri Soci lena La ‘Auccio ofSouthet Asi None Build Opeteand Owe ul, Ope and Tate Bah Yer Bok of nero Law Cac Amen Fe rade green (China nena Econ Te Arion Demarco Cone Bare Cour Human Rigs egy Charter Tey arpen re Frade Asaciion Baropean Hun igh Repre raed Egat Tumse Foreign Soe Imus At Free Trade green Genera pment on Ten Sees Huma igh Lae ora Inco Chamber ef Comers al Courtice Inca Cou of tie Rot Ineo & Caan Law QareyCSD Review FL ue uM UR tasSCTR ieelUSCTR) Je A wit as MERCOSUR ica NAFTA rey PCaRep Resi RIAA, Stok ae UNESCO Lief Absa means Cat fr Semen fete Dipaer Caveton onthe elem oflveee Die bere Sera Nena ther Sees sch 93) CSD Review orga ovine Jounal {nena Law On Aner Li Mose Tara Rew etna Monty Pend Tea US Caine Tul Rpr Journal eatin An Sale Wr Ivenenene Trade Landon Corfe Aberin onl ean Of Rate Mtl Agremenan eves redo Cam del Ser Can Maceo Sater Co Muelle Guar gency wthimeian Fee Tae Aguement ‘Now Governmental Oration Orion or Enon Cooper ‘Ona Payee Cpr emacer CourofAirn emanet Conc eer ae Reman Cont etal tice Reps Rev dont de Acadia (Cobre Cuneo the Hage enemy eatin Repro ner bia Aad ‘Sri ness Aarne Tension Dp Manage “le Rel rene Mees need Nate ‘Unie Nan Bacio Seni nd Car Onsen bweTaD os nd) Tana var veur Lin efAbbrecaions aa ted Nant Common on nena Tne La Usted Nato Conf ned nd Delon Usted Nan TS United Sera Amern Vander Tesla ae ded Tn Viens Comes oo he Law Tees Wd Tale Onision ‘eae Cami Aeona Nature, Evolution, and Context of | International Investment Law 1. International Investment Law asa Field of Study Gocally peaking sherce nd igpcanceofecgn investment has grown in tno tc in wo major ene In the fs en prodBowcen 170 and {Bi sew dimension of tcraonal Gnancal mobi elt an termes owe i frig inemene Fen seal pr fiw is serch a ‘complied by way of eaten! lw which opened wp cone rene tteabteneeofterausoeal agreements pce sed alr oerning tee tnveniene: Hower new eraonal rls on escommnicaton and “tanipor filed dfs change of Qyuamis nthe caonhiptewecn nal economies, This fr modem pod ofan inenatonlacdeconory Aor aed in 191 by Worl Wark bythe sobeqen rouble economic once 190s any Wok War ‘After 1945, he pac of growth of focgn ives accra ower + pei of recnstracin, br crew af pea nthe 950s when een inentene uadrpledBerwcen 1990 snd 2000 agen pred by technologie Innovations sd ted cos for ranapore. Tis ew ombur of cg nes ‘ne wa accompanied by a umber flere, which rew fom 500 in 1990 abou 2:00 in she year 20008 A speci cue ofthis ptiod was tha abou BD percent of fog Invexment a evopig coun weno ly donen ste malay As and chat invemmen a fsa wen dawns I 5805, the worlwide al atow fog dic anentncr ov toan hori peskof Staion USS andthe amber of signed inecen protection rene UURCTAD ulimomearkprtaon2 Nano rain lence a pegs at cements Sed ee Shame oe at Serine eee oe ee seer rae ected teeter fore nee sl ep hee Secs cree me i fee ig set mae fee a nh le a rests cmt teceibe® tS a F—hClrr—O dhietthsiconay hepethatis ote ee eee, ‘terre eel ins get ogi et ‘readin onts fe eg er . he comiincy ofthis bo of pei econ e ‘Sac ‘nite ce nappa cea begining can psc epres ogc val fursker ef Unsenecanbapuonasensnes mrp afta Ses isikeraamcteece | Busnes Nae af Forge cme 3 Foreign investment law costs of ayes of general inemaioal law of eal tandanls of inceaonal economic ado tine rales pai ‘bits domain, The dy ofthe ld mute take ote account andar all oF these the eel ofthe law: Moore, a lg been aerved tha the rls on fren ivement by nec a incorporate rapes the aw of thas sac. Depending upon these ofan edi xe and ne he serpy been eleva domestic rls af the host sate and apical ae fie ational aw may become cena the equi analy fae or stance, ‘hedomestc denton ofan vest dort useing the jr ‘ion of imeratonleibunal, the dss rales on mana may dete. ‘nine the nature andthe ounce oa pei ue, Not ony ir the diinctlon becweesineratonal law and domes law becoming blared by the modern regime of foreign investment lew? he clasalseparton becwcen pubic and private lw at empasied expecially in Concnental European legal re, abo cannot be accommodated tn neat ‘stgois in ths el. The Broad queso ato wher the cagery of ie anal economic wn ger lls forse cision twee pve lbw apd publica silustated epecallby the consideration of forgives nen at The es goealg contrac betwen a ovetor apd ee raw on bth uate and plc a. fc, the rls enablih nkbereen SometicTaw and public itrsatonallamToacesainesent the ulesf domes ticle ae biog coofronted and supencel by eles of pli inensional law, {nd in elvan Iterations, te deen of tesa wl earth 09 tha Understanding of domestic lw, posi accompanied by 3 proces of review Of mesic lav under the lterestanal saad contaied in teats ad ‘ene interatonal ay Asa real of thx pecliaries, cotemporiry ine aan imestneat lav segue sine charac the undenaning of hich ogc spese uy 2. The Business Nature ofa Foreign lnvestment ‘A LongeTerm Risk Makinga foregn insestmenisifatin star fom egapingin a rade ra ston, Whees2uade deal ypcaly omits ina onetime change of goods ral mane, the deco one in og country inter long te el “onshipberwcen the lava andthe ow county. Ofte, the bans plan the vestor is sink substantial sources it the poe the oat of the investment with che expectation o eco this amu pram acceptable ite sco ent4 [Namo of iran nme Lae of exw during se vbsoqent period f investment, sometimes cunning up Soyear ormore "Ay fara ia the desig fac foreign iveument ia layout in adeace hein in such along laos, oc rm Busines pepe {ivan ror the egal point of view and then enya Bins eneepe snd {ga srucrre ht sable nc only othe implemen of de projec ‘ener tala oii ih that iy aise daringthe perio of estes In many cic thi ks exile ves, athe moneys in he pot the ott yply cannot be used bogey at another leaon ‘ecu the machinery and itallasns ofthe proj ar petals designed ‘hdl whe pris ofthe poet and eosin. “The dyn nthe ration heteen the st satan se ver ae sla dite acre Bele and fete investnet made. Larger poe: Srevppaly nce underthe general lawsoftbehot coun: esd the we Ste td he ogy hvesr noone a dela vesmeneagpomen, wick tna ln adap the gen legal gi of the hom county tthe projec spec tel and pees ofboth ie. Daring tte negations the wear wll tyro wck hin plan othr grantees tha redeemed eceary i view of ‘he naar and he drain a the projet king accounebiseralo le late enescnclad bythe art sa which wl provide guraices on he leet of inertial aw Depending on the poet, the investor may Be in he ler sat ting these egrions in eget state heme aac be "Te investor wil aormly bear the commer sist inoree in posable changes inthe mark af he proj, for example, new competion peng, Cola, xchange ty o change afetng the financial sting In eras ‘Sanction, pevaion willbe made or adeno engoeation inane of ‘angen she comonomer of te poet The ola ik, ee ‘hk inherent ins fare nersecton ofthc hr at nthe eal deg of che rjc wil spcaly be adresed during ths tal pega: unis hese Fear ppoprilyadresed in an apple invest the inesor ‘nay ak or prc ona nb of ois suchas the pial on che ‘arrepme, on provisonsdealingithinflaion ona day fhe os saretobuy cern volume of he product especial in the el of energy production 00 ‘the Faure piing ofthe invests produto aston elton formate Jake neded forthe product, and, peal onan agreement on fare dip setknent ‘Ones these cpitins are cole and he Imestr resources ae sunk int the projet the dynamics of influence and power tend aie in fv oF theo sae Te ctl pla aha ais othe frig esr Hein {Change potion of the hot given tht wok ake he cheme of ur ‘ne, and benefits whch the oss have ald down when they nepot- halve dela which med he basi of che Iver basins plan andthe ehssanssisnannnssaentey Busnes Narr of orga ienement 5 lege expcasions embodied in thi plan, Such a chung f psn on the pat of th host country becomes more ely with every subseguatchange of Eoveromeatinthe hose ae uring the period fives Tis taut ofannsertmen rns nevitbl ha the ats tte, and pupos:ffocign ivesementlaw ands ourassrsurily dati nthe ede Feln of aerational aw especialy in sompatinn ote tern of eal meh difrenc eewsen she wo fe cle fc cht sn seaming, moos beeen fsgeinvexemen an eli, Weber at ana Tog pops or asain transfered rm over ote te mee tained in dtl whether hei diene tre annul oa sasarpion ‘of commonly: Often, coneepe ha pp oe in cine saree 0 Je dif shade and carci upon moe dtd seals, king into count the pci uses arc longs aeg avsnes project “The weatrbaedrleomivestment neo be undesond sodierpee lke al west, i the ene of the gens eles of intron Thi lncudes nor nly castmary law bu also geet pipe flaw within the ‘meaning Arle 380) le cote IC Sete” Theater wl ai poet cela the cones of vestments une cern ccunseacen xpi in theese of acum in the et fest nd inthe nepetton of ideal ters and pre “Among th general principle witha broad spe of plton, she reuie mento abnre the rl of pd ih exec perting wooo rien Investment, and ives ibn hae ad eure to hit pine” En part this emphasis on god faith ret the Funda signee of he feacep forthe undentanding fallin in nerontioal aw" Mare se Stal, however. the sujet mace ofthe eld sl may dee nal v0 “py the rnp invew ofthe long tr eam n which the iver Provider most of he required resus tt ore the prot especing {0 reeves ir eur ne ctioship thin the egal ode the st State deaf: The Siac longer i the inven teal col lary inthe povection of god fh without which ivertmen ws would be ampere sree ao ah dh Py ae Ts nn Dron oan. 25 Se 1821189803, tie dM Gn So Been | Agen 2008.44 TLA 00) 135 108 Tondo Nar ana 3006 pars tetas Cant ase Pr Ave Moe hope Tan ied nin meen les apache Sa) Tg Ae ile Ven Cent ote La of Tes hich see ‘lthetrarytntheieometandinchelightobacjetsodgperpen Seem‘ Noto of eraiona Incense Mach to bei fr connecting che bie betes of invement rks iy wih eh gels udeing the pence of good faith ven that trust inthe Fare cond of the ssa and he iver athe heart fee invent decion'* the ight o the duration of invent poets an the rufude of eal nd fcarver, ks ovo ha ivemen ‘tester andl vente cota wll a coe all modalities and pombe turns offre eve andthe pil of go ith my be apd outs therapy add on te vt of eae contac Sof nvesment ibuzasbave dene on th princi of god fh in site «sions aang the roca of lene the nection of documents di ing ongoing pocedngs* the relance upon informal commniatons made Iya ali and he fal negate om the pao he ost ate ements te roe eure ffairand equitable resent, sd the pic of god fais dictsd Ia toe deal unde that heading oe ‘Aspe ae of plication of the concep of ou ft, which as xgnally been regained out othe el of orig meme aw conc ele ‘fe of iar statements tthe conn ur which thee maybe co Sided binding Her, the pnp of oof ly io he option ofthe rin ofeoppl The Inertial Courffuniceand is prolcesoe been that sch deacons wil be ing Ine he cheunstanees ‘nde wording of the statemencaresch hat the dees ae nad oly hem Teuton maya aboin he elansip bane thes ate ‘nd he eg vest. bia but ave held 0 th bai oh pene Splof ond ath To eer Caper OPIC he ae bale ht an ‘ipso public itertinal lav were pruly ple wher the gustion ‘nas ere, whether ations aken bya goverment conta cand damaging to ‘heeconaie meres of sew aren confit with underakigy sans {Gren in god fh ouch lias indent ote aig the ve tres fled bythe un To he one ofthe rad table este ‘adard (FET), he tba LG&E » Aree ound chat Arges id ‘each he pliable BIT by ot aiding aoa legit inthe gor oration ser: ‘Ageia pepe withthe netnent banks 3 tac Be Nala See i, lg! Sar fan Grrl Denna» Ncw 5 Apel 1935, Seis A nent ee ecm oat ioaier be tain Hos Se Severe and Focgn nsment 7 Sonya eres ie ip Sioamnosemererer earn ema palettes ath rr serene el ith ca Seecinceme nore abet tek eet a i 3. Host State Sovereignty and the Rules of Foreign Investment Undertones latina sncbligaion 0 ‘it fin ie ny. geal rin any aaa ope ‘economy. We thei to exhaeand oul invest erent macs he pmeroconleeteae sites willbe wen avon em hee cocee One thnamit gine shane amine su stn wen css pa dr enon ag iene omy th awa ne ae ce hte ve onsen ever Wher uh stem ‘erp fm acme whet ‘ro eh een dr opr esc segh ‘asthe power weigh he soon and acca benef eat ice omon fos ens it eamrencaafbong oad ‘estan pena dove tency Nea oe Sn a Sones open sy gue gue shear oes 2 £6 ain a 3c 206 See Nt oua 30 A 006, 43 cv esther Doo fico Ja a TESS he hier Ci Ring Aa (0 4A 8® Narofetenainalbrscsens La and eh ste wil exe i oecign preg in detaining prefer Shecand pie whvo decid hehe onladean nvenoene en “hed hasasten oe theo hat lg ives tes pay fob gortheflaign venment onda gepaphedirbton Empl idence iningto an cee nc nnn nee tha wuld be diy ‘Etslby thea fcc eserharnded caine cn en hog ‘studi sg car spo fr wl i rom ay" me Be Tel, howe te op scury ina ow cunt fo anise po fet soly on fcr wl infec a oveumen dein, sod that he {Ein prance ne dete oy leat by eonoml conadaone There hsm dhe rat Sienen woul i cl promptanincend fw og incense On ther and [Balaton hve oi care line infirm sbueeenac Sou ep mrs and he oe ond he kel sablaysroundings orca ives in proc con ay pees poate detn en Sf ectopic a ai Span forte mentor cat ins sot gencly walle ne after Eos in king deco bourne octaves a wil oxy a Sreasadadte nce fr onl gs ere ‘ccna bs brn ed can pec me es ae ngoited coo tasly an hen dell conadonton of ha pcan Typ ‘Shiu eporing seo meen forth on pp =” tte cient eae ne SRSA Ee creme stroma ‘snaps a ony ome re Seen eget Rae pee Sr tees fee epe naira seein pcm te ee ee Siegen nena emer ra ete nc cry ie ee Cetra ete et Balaroiien aie vin euinarmeme sits ea tit eae gaan gare Saskia in i Sta Senerigny and Farin noment ° 1s they have prec this infnmal document rote capitaLnporing sates, rhe beginning of the togatons 3b for the enue eg es, ‘Graal weve deraping stats bane devdoped thio reftences for a certain cheme af tats, meine: with tha awn model drt Als, ete Iavebeen noted betnen dewoping coun “Aste and mare eats hate ben conled, nda the iteration di aon en the acre and the dct of thee rene has progres nha Ing the comours and subsance of nv claes, ay argument tothe ee ‘har hos states have deft aecqed invexmene blo without props owed ftir scope a sigicace wl av became les conning AS ‘pie bow, nvestnet ents re oday cen radmin het 0 ational investment aes?” The king npr om the sverige of tc Bost sae contol as itay bein the nid ese, in hissed. ase sary coal tothe objective a eating animes nly cae Conceptually one may ask eoday whether the operation ofthe neal law of ocgnivesment amounts to 3 body of ternal rls of alii: trv law governing the atlorip ofthe eign veo and he state Ieicevidene hat the ues oa frig aventment may reach fr in segs ‘of domesc lim, which would eaoally have belogel to he “domaine tere of each host country. This elsing charceic fete of fore investment nw bas edo concerns ae jus abou he prservain of maton sorergary but alo abou the demorratc logins a he process by which fig tveseent las devloped ane appli. Inde, hee concern hve sot jnebeen ced by developing couse eins olfovegn invents ‘Wah oqal foe, this nkage hs been oberved and ttc by eget of sii sky in eloped count ad om she pita on, by the Unite, Sat afer it became s member of NAFTA ands responder of NAFTA cee ‘Atrdional undestanding ofthe concep of serena rm ae rent interationl economic eer may led othe view tht the inert ules on foreign lnvesemen each even ros the lnc ba oie {cepa The ules of freemen ouch pon dome gua ‘ives as about iy the organization a eda, amine principles, ay a9 3 inwey onal rsa tx odoin ity i Sa ied op ar ag al wl cs, on prc ng0 Nato remain incerta avconmenal lv, heals am and of our, ral governing popesy. Again, {his one jor fcr eat ditnguibes sus of vesanene la tom ale law eee tha ues of modern ade we ao aft domestic mates, bet the degre of infunceon done ad thus of potential concer fa {he polar of domestica and of nalonal sovereign, more severe when ue ‘ftmezment ew ae ppl. tthe same ine eco erature has emp fed shar opens of sn economic tem to foegh competion among, the factors tha conulbute wo economic growth and wo god governance 18 {gona Thay, lnveement low embod and pests the tatu td the ‘ec of econo hblzaton, with be potential adage of conor e ‘Gency and of higher living andar couple wih edad lel power of ‘herasionl authorises repute sich aes dat hve a inp apo fre “The cone of god governance asin th past decade ncesingyinfnced the intemal development agenda. Whi exer petlods af delapment acc afer 15 hd focused to the sigaane of nnd important [roc and ces on thereof macrocranac pai the oew hiking "he 190 along wis ematical tule, igh he ce the ll projec ed pulses dpendin thir implenenation aided in thei conception andor ulin, ons faneonig tt ia particular on Fanconi nsitons Ti cosequnce, the concept of goo governance has mone othe ete of Inertial i od poverty edston fics. The ise akeren formation tle concepesom ts be coutained ins Wold Bak eport te once dere tpmen challenges for Slr Sabaran Af in 19892" No sage dion has subse been adopted, br the ae clements hare ben expres wok ing dame bythe Wold Bank athe Inemainsl Monetary Fund Inthe teary brwoen che European Community and Aan, Caribbean nd Ph Sees adopted in 200, hese Cana Agreement the wording isa lls ntact of pleas iain ervienent nt pls an ih Almac pcs aod the rl of fw. gal goremance » ee pret ‘tou manana human mat conoid snc ues he rpc ofequateand sae denon lena car deen mang re ‘dirs he led pbli aor spar and sun os he muy oo nthe manganese Ubon of eaten pay bag, min cei n pl Way si ata Bp is at a eae Seay ef Be SE en te SSM el Gnd Coemsce ie MPS Be 1957 [ | | | | Casomery inert Law 0 forehand neigh pirat pening ane tenet dean dns he nae sir ven, onset withthe weinge of conomit uth Noth od Eggers.” The origin ofthe coneprf ond gocrnancs il in he se ero 8 the formuladon ofthe Washing Cones” andthe bepaning ofthe wate of invesment eas of the 190. The conan coe ofthe piss bodied in Investment eats nee Washington Canes ad inthe principle of good goermance lis in the copii that instal eficveney the ae of a {dan appropiate degre of aby ad predic of plc form tego mental amevor fr desc ewonamie growth and alo forthe willing es of eegainvetrsr ener the domes markt, Tas invstmene eats Provide fr excl constns sd diiliesa fae rad ene Yes Solar wo thse fhe rail of goad govecnance with emphasison dames ‘einai and pole 4, Customary International Lave The Emergence ofa Minimum Standard As cay as 1796 Jon Adam, afer hang negotiated ogee with Benjamin Fan and Thon Jean te Usted See tho Se Tey on iethip, Commerc ad Navigation with rane” ephacellyhighighted ‘he protection fain property y there ofltrational le Thresno inp bel afaes erm aakhan wich enles she pope af stags inthe rics of nother oy ep th ‘htfomn othe pci srg yal nb poner Uns che Communi Reocon in Rusia in 1917 neither tae practice oe ‘he commentators of icetsonal ha tasoa vo pay session eo ‘ules proteig oegn investment. Teaty pac inthe inten cestury Potted alien propery noon the is fan atone saad, bt by ue cet aS 1 Bie mcg toch seen arco rg la et Spica naan at enim2 Natrona emt Lew sefence wo the domestic Lvs of the hoe stat: a usteaton is found in ‘he 2) the Trey Bewean Switz nd the Unie Ses 850 Incset expo purposes of publicly, theca one ofthe no wis ding hed in toh sal be elon ae tag ‘Bete of i ony whch thc eden pst lense ages Symphonie! The mpi sumption wast cack see woud in mato aw protect ‘ate propery adit tc eteson ofthe domestic scheme of potton en ad osuicis puranes tothe ale vee, Ins famous nyt publabed in 186, the Argentine jr Calo Cao Sorte nt me premade pepe fs araigm and amet hat the imernaonl le sbou in cet be undeeaod a alling the oe at to ole the protectin af alien property when so ecg the aarnecs oF ‘rer held rationale Clb view would hve oom forall ee ag eof dames sllwing boc rn guarantees, bt abo 3 complerelack of [protein In adnan te Cale doce is bed onthe i tha eget Tor ror thigh fre doen courts and har they bare nog of {Epler pono by this home eae er ace wo evan al. (Colo thay wes conve aaa che backround of gunboat disrmcy by Copealeporting cous end ether proctoe chraugh which tere coon Impose Shir iw of international aw on fsgn govermens In 907, he [Drage Poner Convention wat apd o preven thew office fr the co Ikon of dee and Call adil stack the pectin of ci sens sce o hve et appeal arte poceson a ste ‘On th imental lee the Calo doctrine remained tthe margins of he ™ ‘OF couse, thi petiod of canfonation le isc abou he cstomay Imeraioal us governing frig iverten™ Ths pee aed ese ‘ul sound 190, Atha tme became lee cha the Sct iw f prop (ry had called, ogter withthe end of he Sve Union, and hare cll. {ir econmic independence had troupe major facial i, rath chan snore wee fr the people in Latin Americ. Frm now a, Latin Amer Sates sted 0 cnelde bist ivement ete whos pnt wae oped tothe Calvo doce, nd thea eal for Permanent Sovereignty tn the UN Geren Anemblyeamesnanend ‘Acthe same te, terontional Sanctions ered hel pol on he tl of pate nese, and she vo-cilel Washington Consens” wh | oew empl om the prt aor i the proces of developmen, su led the foundation forthe ow dominanc approach to dela ats co Comin psc view of pte orig insert In 1992, the new apes ‘cyan inthe Premble of he Word Bankes Gidines oa the Tess tered falc ENGR heaton se Noone esr eh PUN el ay etn S12 oe Rr Eo Ost ayn p-IS, Cm Teal er 8). amen wind renew Tee Sian Hee G LoBt A Rem, ShanprRcbrmann, snd K Zaman a ‘gra:w Nurofen semen Lae — _=—=—=—srseEeeEN ee ee Sey esc da we mel ng Ang ‘Sect an mel Gans see cane, an sce secant ln ou epee ace eh ‘onan face Reg gramme a oy linge me opiate ‘ite trot ns al ay te chee to cnnel e e ‘Grocer urine nee gamete secon hb Ey Se esha ‘ni Fie Tade hacen NAFTA) in ohh aes ee Shines Coupee in de i ee tain re arate eee -..—Lrt~—e—s—seee | = | —=—rti“—™er—————F a ——rti—O—sOe—S—s=C=Cst ‘ot disappeared. Fr instance, in the context of NAFTA, che thee state parece SE madara coun rT ee ULhmLFr—s—sS LChmUr——C S50 pen sna eae ee tent can iat ae ‘rag de acy te tain ela ‘hp cine pie fap oe ea Tepito cc es ea pethenir edna eat TS om on gi aa eo Stepps Wane eae RGEC ot ped aaa em hee “ay La sala and Pape v More recon ai dota shat hs aren Indico ertais «othe impact of me chan 2.500 tents onthe evlton of amar law ‘Nac uring. hs inkigeBewesncutnmaty lw andy law bas Be tthe fret the few comet that hive are the wate ofcsomay tow reqnlingexropristion td compenstion fri propery since 190 Fm an academic eno, the cari reo sled given the ‘agro rernatonal econo lon, the wference ocstoray In Sine ets andthe pack of the cure eof rents with Re romanng ie woul alo beet retro cre that che egoing conoeset SEs ofcuamary wl nc ceo Recess and nae tevin be ate 5. Treaty Law: Evolution and Purpose heros of main ty ules ive can Be ced ack to pb sna oh ht ome {allowed inte nines cry yes sng the Ul ene as Exropean ali sn cbse the now Las Asean Ser Th ely saya ti a id tng ciation caf expropriation. Alc 19, th United Soe eed {Sof apeemens on Fri, Commerc sed Neva CN) flowed by anherserie of 2 es been 195 an 16 Teron invent ner neve ponent data nae RCN tet eventhough be pe D4 rs ded op comgonaon des bt 10 povsion on the gw aah ers of nes in the pt terse Aer 945 ae mate ee epee ten an FCN treter consned mote etal oo Kaige senor’ Te Ms OS cay Fret erent Da cx yen of Jeep ater concade new wate of eel Kind Ts 197 the US Ste Depron launched nko Unie Sats se jin Eropean pc pa todd conchae tht — = =Ss—sS SE 5 at tm fr wee Ba se cn ate a nt matte teh mt taal —™—__ FLmUrUC——C pi in Hern el, Artin Frige Snort Dep (2004) 5, 5K) Vande [RE onsas Pen cf ed Sr 90h ona sna a8 Nau fete sment Lat are meant oad se of focgn invent nly aly o protect mes ‘nents ofan and ellowing shore peri of palit esa in Yew ihe fw of exporting jbs by wey of promi fora vexen, and {Blt pons fom he Sate Deparment he US Trade Repeseaine lsog shar prin, the United Str, beeween 982 abd 2002, conde ‘Stier ues minh wih developing es “The eof madera investment eases had bun 1959 when Germany an Pain aloe irl apomen, which nerd lo force tb 1962 The spl Gea Inte neh reat stemmed fom thet that Gs ‘ad lu he blk of seater feign ivement in netted seemens ae 1549 with view orang im pre the damage had Brought about whet Sseing Wodd War In vation af ernstina lv Before the negocios ‘ese ceret cer depos, Germany had pel ha piateGeoman proper woul nc be aected. One the mater was dese the ma Geta egsntor Hetounn Jon Abs, by prfein + banker, dedicated enormous ‘feo. iat 0 poet og inven. In 195), Abe clled for 2 Magna Chars for the Protection of Foreign Prey in the Kc of global ea, which wast eal not js spe ‘Seana f point alo a permanent arbi eibural charged Wi {he appa ofthe ety aod withthe power ly down economic nc ‘one npn vilang sate incding ao sigsterer When son Bee ppc chat the in ws not ie fsck grand approach As oped or Inne made ile inacves® ogee eth Sr Hare hawcrss. These (ess Erally caine Inthe Abe Showers Dra which, ogee with ‘ther conan sch Swe dae in 1962 ein tar othe Be or ‘ithe Organization or Economie Cooperation and Developmen (OECD), the st i tel ol a caer ere eer ‘facta on Cnn De es S08 ie an a fe sao 7 ‘inti Bu oe al EN et seared esc uses nal es ee geen SR et tee eames te Gen Pn wget wiped i nee Wr ~ ER eli: 1959 Rh nora Wide 8. ] Treaty Lan Bolin ad Pape » eater or eneprecae cole et Centon noa Seat Saeeneraneree Hoe Sa keaeeer try ie nt com nt uo ie Cen os ye Pesci autem te Sid acre eRe es rt cme oi 5) _ eit few Fe fg 72 eld he Rl Ea2 aarofoemainal semen Law the prospec find bal consensus on he substance of vetinetalermas minimal Inthe Wold Bak, asthe then Geeta Couns Aron Broce, who n- sted an drove she debts on the poe sop of inca come Given the controversies within he United Nations roches prope concdl shat orth imebeing th best conebun of she unk ase poi sce ne procedures fr impart setdemen of dite stcmpin oc sggtementon susan standards Ofcourse thc appeach seem taba acrid by «dere of article issih lope would dete that ‘yrem of due seement woul ave a be ed on ase of abate ae "hat olde applied roche rgd that, ons pag pin ews axiomatic approach war eer ecu) or pret, Afi ight the Brock concep (procedure fore vubvanc) scale lime and modest one. However, he ul the design of wha we to Deco, |n 1965, the Convention on the Stems of Invesnent Dupes etree States and Nasowals of Other Sees (1CSID Commenter) etalk te Teeratonl Cee for Selement of lavsement Dips QCSID) Ta ee spect has become cla hat the reson of HCSTD ame othe ldo nora icp inthe modern hizory of lnnatigal cooperation concern, there and proton of olga insecen, Ths eae the cong ato ve perinent eer af ISI frig vmpania an dees Mind Sto of Ami ua 1 32115 (005 po 5 son Te el A OCD Rep pC ng, Dace osm bt 1 Hepr Sp et ‘isa Fabs stn nut 22 Ap 0 12 SD Rae Ms ps SS Php, Don Jin, 2 Jr 04 8 SID Rr 5 3 ha Utd San i 1 Ot 8,21. 8 3, 6410 ences 7. Bc. Ac hy afd Ap Aerie een Coin Dj Se op) ne Applicnon of eeoment Tren Time 4 (6) TheDate Relevant to Determine Jridition eis am accepted pencpe of internacional adjudication that. the aiene of try provost the conerry, the eleven dae er purpose of ji theditea the nshton of procedings® The ebunl in Ven id ici cll conic dernier» party x tigi sina! ca frm fr purposes of friction insite pein aby fens he de on whack peeing deed ie ee ‘i ISID Tuna ie coe spd nae “Taibunalr hae appli his prince a umber of conte Fr inst, hey Ive deter tha purports of rion the dec de frp fen inthe ICSID Convention ofthe rst sae ad ofthe inven sof Aasonaly sthe dat ofthe ination of beon procedings Te ame ince plo he ny imo ceo BIT and fetes evan hen edt of theism of rocedings a ao ben eld be deci for the sano he daiman ach oer ofthe cm n ype. The leo the invenment or he sigma fh clam aie chelnstton of posengs dd toate the claimant eanding™ (@) RelevaneDatesunder the ICSID Convention The ICSID Convation enced nt force on 14 Oszober 1966 30 das aie ‘he depo ofthe teeth atfston. Ines ine fre fonda wes 30 day after the rapetve Insrtne of rtfcton fas ben deposed” et a i of crt Jenne es Soe ta Went Ces edge ey 8, Sra ca ees ei are See ee drt ST a PA Ain (Tanai i Nan ye ioe econo pene RANI Sopra NCOU Lea, st lt pS ee Srey eee nn = Se Si cig 431g 3,2 Inerpretion on Appleton of amen Tass In cae 4 wate denounces the Convention, the denunciation ake eet sx ‘ons ae teres fame to hat cy the Wd Bank" ‘Ascl 25 ofthe ICSID Convention lates o several dacs that cal juidtion.Thehost are mas bea patty othe Comencion onthe dt the ro ‘Solingen The se aples to che sate ofthe invests adn ‘Sta lo bea prey othe Convention by the time proceedings erste “The poral equsemnen or theives atonal are somewhat com lee for nar persons, under Article 250} chere are two equeens ‘lang so diferentes The inevor mast have the nani of sate any the Conver both on the date fons aon the date he eqs Ferarbiaton else: In ation, the investor ast not hve the as sate sanity on ete date. The late poison ele parca, 0 dl 0 ‘ule nana Asa patie mater, the dat of cnsee and he date ofthe Feet of proceedings wl fen coincide ot lea be very cose wo ech sth Tiss so wheneer consent isbased ona geal er ina ety of the Ths stat domes legato, which the aver simply accepts through the ‘seta of proceedings Farha persons, under Ail 252) the analy equiement lates «ool one tte date of onsen, On tha date the rd pron musa ‘eatin party othe Conmenton eter than the ow ate praca {erm te datcofcosee wll ost oten be hat ofthe iano pocedings alo for jel pesons. “Ascxlaied loin more del” under Ae 252) of he Cseton| ‘he ht ae ad the inves ay ager to Ut cl inearpoted eompany ‘a forcig invetc Devas of og cote, Th provsn res the date ‘coment othe leva date forthe taal och het ae bu set the die ofthe eg coc Teas hve geliyor the ae of ca ent abo fr puss of contol bhava the sme tne ke subse anges pte ine fhe isting Soe BTS and the ECT Sen prove that he fp cnel mas ext eth dpe i. “he die of the eanset to TCSIDS juiictan is important for seal parpnenCansct tae exo the tie the prseingy te inaited™ As sss ig oer 3105 ot ge he as oF Peer 2 Il, Ds ont 25 Sq 193, 1 SID Reps 34 ‘start Conroe Sd Repu SAB Sa ‘htc ag eS Rep LTE De Rake enn ne mete > Tralee Dcson 2 an, Ose 1996 5 1CSID Reps 47 a Appian of octet Tete Tine % plained above the owestor atonal eurements st beet on he date feenent ‘Once consent gv it becomes iteocbl ean no longer be witha spite Onher rms bene uniai, in pocg rom the date of onset and dilate proeton en anger peice Tn adit, the ‘bration Roe fc the tne of const wil apply nls the partes tere other” “he ine f conse isthe date by which oth parties hve aed atic sia. If the consent casei cman in feb one pay cepa bythe other pry wil deerine the tine of consent. she hve tae makes 3 ener fer fo conse arbitan a leialtion o inate thee of nents dtrmined by he inventor acceptance th of. Thi er ay be scrpe simpy by ning the abate, Tes posite thar conse co abla s expresed Bore aber onons foc the rion of buna are me For stance, he pares may giveth enest 0 ICSID srbiraton hfe the Contin’ raisin By the hse ‘ator bythe inves ome ate Ta dace he dat onsen wil be the nt on whichall the conditions have ben ne I the ho state the inves home ae ais the Convento after the sgnatareof scones agree, the time of onset wl be he ney into fre af the Canveton fhe respeve (©) Inver Temporal Rules in Other Treaties “Treats cmminng conse w ita of contain pec povsons dtc. ‘mining thes temporal applaton. Many BIT provide thar ey shal bap thle allimestnents whether male lore a er ser enya force In ‘er words, they protect als exiting ivesnents This shoul no led 10 the concasion that eats no conning a dau of hic kind wl ony apy 2 Aides wei ates bn tn ara ‘eof laura 123, Wa 16 Cab TVS Ra ond Nes, my Bilis eeu aecnc carson 2 Spee 20 CMD Report 9 prs 9 ern Ua Ce, el icf 30 0kGND ep peo i texte Ua hecipee Sineninw Fore ie Spee oh eID alent Pac ‘Ae Dan lary bn 27a Sp. ow“ Ierprestion ad Applton of sesens Tries one investnens Bac 4 provision that extends the says proton ‘Sining meen does a hn ta act commited elon the eat s This concaion war contre bythe it that he cour dso wat «major ent ofthe complain. The bul si Th nena of news, he mis Cou, pense 2 # ce fc to demi wee he usr new dius Auta Clan ce ey elon legal weg of be hall Cure he iba cones tha ch il pacar anc dept hen hana Cn eed Bic Iefillowed ha he eibunal had jin ve she ei. 2 fe re 4859 eh} Gli, ln a ISD Tne saga hte a at “Sa al bgp Donn iii, ne 206 1 Re etnI Investors and Investments 1. Investors Individuals, Companies, Nationality, and Shareholders () Private Frsign Investors Inzerntonlivesment a x dxgnd ro promot and post the atv sf prtate foxeign inser Thi doesnot nosey cal he potion of overnment controled emis at ngs they ata cents athe than i $F oermenal apacy! Whetber non pot ongunzatas ay be epded investors ile clearand wil depend on the ature of il activin” Tavern ar cer individ (ncural peans or companies Gurl pe son Inthe majacy fates, the ves company butt ined le act as ivestors The Frege ofthe ives s determined by the inser’ atnaliy* The origin oh invests parca a he capa oe dese for the queso the exisence of frig ivestment? “Teint atonal deen os which wea kay ence! he investor wise) ona BT. ust show dati asthe analy Fone he two sates pares the invstor wisest lyon rgoval ety sch as NAFTA, vt ae til ie as REE area ge ane gene ee tee ae ie Be aint enc os ees Rei sl ahem ree es Sere ee ieee eats senha SO RAFPA hie PHO ECT So wie ha li | avez Indiidual, Companies a othe BCT a show tha it has he natn Fane of he states panies 0 (he teay Ibe inser wisest ly the ICSID Cony, tm show thactharchenaoaliy fone ofthe ates pars the ICSD Convention “The fears nal elevan fr wo pups, The ubtae stand- and guasenced ns rest wil nl ply eo the epetve atonal? Ta a8 ion the aradictonof an imeroational unl dterine, meray the ‘lamanes national Gee bow Chapter X2)e)- Inparalat, the hres ‘ooteno jardin given tough ety, wl only apply aoa “oe that ies party they Termaonal eaciceon maton bss as bec shaped oa age eaten by eves involving diplomat proton of india and compas by this ss of maonaiy! Ir somctnes qusstoned wheter the ponies dew ‘pedinsharconetcaninply beta osuatons wre iver a {der acca a nernasoal abit To the exten that here are a pec falls a iovesemen eats, cine etc lyon the eae pce evel the cone of diplomat prteton, (0) Nationality ofodividuals An inva analy decid pray by the fw of he country ‘hoe nationaity is chime A ceria frat, aed bythe ompe- Terr autor of s,s ong evidence lithe exten fhe analy ‘eat ate bes noe ness cons. ate Dea Arce on Diplomatic rvection (2006), th ILC conse tht the rl o conus nationality wasnt speoprie inthe case of a india claim and hat pence ould Te gien only nthe dat of cepa ofthc’ Tn Sufi» UAB the cama had pode serra lian ceria of aon, The iba found thatthe cama bad ltt nationality a2 consequence ofthe auton of Canadian national, afi thar wa eine? ‘nknown then autores Ava Canadian ats ewes une ro rey ‘onthe BIT between Tal and the UAE. Also, ICID jreron wae sata se since Canada sno purty othe ICID Canveson. The al the Sac whch solo by hs ha nina ihn toe dein of Teo here ring athe tn Gd ee at aaa 1g ee on «cn ‘ice oi DE Cr Joey here Cr ue BS Se ie er Si Ceci ee ee eceting aiaaer lng cb lat Syme "tna per ren Ee te rr8 veosandIoermene 4a os toa Bi each hea erat aor jal pceeding tc mala pore henge te rata etna TFcampe m posupon hor hn Whe inca he rb ‘nafs crenata ons ne foal the eres tellecopowerd ined boon tdaethr sie ving found hath caiman dd ot have Klan manasa 2 mater of Fat ny the tbl id no find cena to del with thereon ‘ein that inthe aboece enn ink his matonaliy would ve bern ine” In Ou» Porgy he aia i onthe BIT beeen Paraguay ad Pert Teesponden jected hat Olu aon to is eran ion ial ad US nana apd tht he resed inthe Ute Sets, Theta Fan ha the caimant held dl sina and that bot nteales mee fective heat hare had Pravin avonly as enough nthe ibaa ‘ew tafe im he proetion oh BIT.” ‘Raonalsf be hw eae erly exladed fm international potion ‘ent la hold te masonly of another tate, The ICSID Convention, in rile 2512), cxlcy exe dal naonale Foe of ce maton i thacofthe hose In Chanpion Trading» Bp thee of the cnn had dal US and Egyprin atonal. The ena war unimpreed bythe argument tha the Ezpplan naonaligy was noe efccive” I und thar the ICSID Carreton Ids cesrandepetiraleo the ele tht ay person who ali a the ati slo the hot tat xl fom binging lim undrthe Convention “On the oh and, a NAFTA tuna oo in Fedman » Mei!” habe slam, being zen ofthe United Stes only ad sading despite the ct, ‘hac beh is permanente residence in he bo state Te rial aid onde general nerionl Iv cap re than resent anyother ‘ahaa tbe main comet tr barwee Sean an nl 7 nats CSD Rp % Chg Tdi Fir, Deco Juric, 21 Octber 2083 19 ICSI Review- rei te Gens ame oases Seeafemasie ln Danan 6D 0 ACD a eos India, Compair » In Sigg» gp? the claimant’ talin nationsy was uncontested. The trihual ound tha hey bad oe ht previos Eypianntonalty a mater ‘Egyptian Ine The eebanal ol thatthe alma hire ad conn {slence and opera of basins iter Ia Egy wre rear. Since he Claimants were nor dal maton teres no om fr es of dominat iervemeona? | (© Nationality of Corporations [Nasocaley normally presupposes kl pal, Throne, uninorport ‘ics and groupings wll in geet nf kel potion aough 4 treaty a pod oterie ‘Cosporate nationality considerably more compe than that of indivi Aealsters and eats we a wary of ceria to dete whether i ‘cal pon ia national ora inventor ofa prt tie, Scns the se treaty adopt spurte dione of orotate atonal foreach pry. “The me commonly ed rer fr eporate nao ar portion oe shemin cat oftbebuins esa Account rnc ew nd prac hea ies politi ee Ines jal pen mati The mew he yl prion ‘rmgitred oes Anema pc the onl adnan eo ‘ap hobe ake ne candeten Many sei flow one the ther ofthese ier, Sme tes incerpraton The ECTs denon of veo clade company o ether ongtiation nanied in aeordnce with the lw aplcableinthat Contracting Pay? The RIT between Poland and he Used King dere corporate invest any corporations fs. ogastins 2nd ction incorporated oc ‘kat under the win fe that Contasing Pry Toe Us Medel BIT of 200 describes an ‘eres Paty ara enterprieconsiotd orongniza under the lw of Duy In aes In wich the reve estes provided fr incorporation athe only sera tern usa have eed to pierce he corporate vel at ok 2 gee i ai Apr. > Copa! pale levine nary 05 ea et Re et et NS Ris "pus Ves Ds on cn 27 Sper APS epea pe a ie Sl Bafa ag CRD Ra Eng haere, Ane