Standards of Investment Protection

by Reinisch, August

• ISBN13: 9780199547449
• ISBN10: 0199547440
• Format: Paperback
• Copyright: 2008-11-15
• Publisher: Oxford University Press

Summary

This volume examines the standards of treatment demanded from host states that form the basis of contemporary international investment protection. It analysis the core standards commonly contained in bilateral and multilateral investment treaties, including 'fair and equitable treatment', 'full protection and security', expropriation, and the non-discrimination standards.

Author Biography

August Reinisch is Professor of Public International Law and EC Law at the University of Vienna

Table of Contents

Notes on Contributors	p. xv
Table of Cases	p. xvii
Table of Treaties	p. xxvii
Introduction: Interrelationship of Standards	p. 1
Admission and Establishment in the Context of Investment Protection	p. 9
Introduction	p. 9
Approaches to Admission in IIAs	p. 10
Entry of Foreign Investment	p. 10
Admission Model	p. 11
MFN Treatment Only	p. 12
Pre-establishment Model	p. 13
Admitting Investment in Accordance with the Laws and Regulations of the Host State: Case Studies	p. 16
Salini v Morocco	p. 20
Tokios Tokelės v Ukraine	p. 21
Bayindir v Pakistan	p. 22
Aguas del Tunari v Bolivia	p. 22
Inceysa v El Salvador	p. 24
Fraport v Philippines	p. 25
Ioannis Kardassopoulos v Georgia	p. 26
Conclusions	p. 26
National Treatment	p. 29
Introduction	p. 29
Background and Treaty Practice	p. 30
Investment Case Law	p. 37
Like Circumstances	p. 38
Less Favourable Treatment	p. 48
Treatment 'No Less Favourable' v 'Best' or 'Most Favourable' Treatment	p. 54
Burden of Proof	p. 56
Conclusions	p. 58
Most-Favoured-Nation (MFN) Treatment	p. 59
Introduction	p. 59
Historical Developments and Theoretical Foundations of the MFN Clause	p. 60
Typical Examples	p. 60
Historical Developments	p. 61
Main Types and Economic Foundations of MFN Treatment	p. 64
Important Investment Arbitration Awards relating to MFN	p. 67
Asian Agricultural Products Ltd (AAPL) v Sri Lanka	p. 67
Pope and Talbot v Canada	p. 67
Maffezini v Spain	p. 68
ADF v USA	p. 68
The Loewen Group, Inc, Raymond L. Loewen v The United States of America	p. 68
Young Chi Oo (YCO) Trading Pte Ltd v Myanmar	p. 69
Tecmed v Mexico	p. 69
MTD v Chile	p. 69
Siemens v Argentina	p. 70
Salini v Jordan	p. 70
Lucchetti v Peru	p. 70
Plama v Bulgaria	p. 71
CMS v Argentina	p. 71
Impregilo S.p.A. v Pakistan	p. 71
Camuzzi v Argentina	p. 71
Gas Natural v Argentina	p. 72
Bayindir v Pakistan	p. 72
Continental Casualty v Argentina	p. 73
National Grid Transco plc v Argentina	p. 73
Telenor v Hungary	p. 73
Suez, Sociedad General de Aguas de Barcelona S.A., and Vivendi Universal S.A. v Argentina and AWG Group Ltd v Argentina	p. 73
Berschader v Russia	p. 74
Specific Issues Addressed in Investor-State Arbitration	p. 74
The Ejusdem Generis Principle	p. 74
Explicit Descriptions of the Scope	p. 75
General and Explicit Exceptions from MFN Treatment	p. 79
Specifically Negotiated Provisions	p. 83
Relevance for Procedural Provision	p. 84
Outlook	p. 86
Arbitrary and Unreasonable Measures	p. 87
Introduction	p. 87
Non-impairment Standard: Three Perspectives	p. 89
The Perspective of 'Judicial Economy'	p. 91
'Methodological' Perspective	p. 93
'Substantive' Perspective	p. 101
'I know it when I see it'	p. 101
Due process approach	p. 103
The non-impairment standard and customary international law	p. 106
Conclusion	p. 109
Fair and Equitable Treatment Standard: Recent Developments	p. 111
Introduction	p. 111
Does the Standard belong to a Specific Legal Order or is it an Autonomous Standard?	p. 113
What is the Normative Content of the Fair and Equitable Treatment Standard as it has been Formulated by Arbitral Tribunals?	p. 118
Obligation of Vigilance and Protection	p. 118
Denial of Justice, Due Process	p. 119
Lack of Arbitrariness and Non-discrimination	p. 120
Transparency and Stability	p. 121
Legitimate Expectations	p. 124
Proportionality	p. 126
Conclusion	p. 129
Full Protection and Security	p. 131
Introduction	p. 131
The Sources	p. 132
Overview of the Different Formulations	p. 133
Importance of the Formulations	p. 134
International Standard	p. 136
International Law as a Ceiling	p. 136
International Law as a Floor	p. 136
International Law as a Equivalent	p. 137
Physical Safety	p. 138
Causality	p. 138
Forms of Behaviour	p. 139
Due diligence	p. 139
Subjective or objective standard?	p. 140
Sovereign appreciation	p. 141
Application beyond Physical Safety	p. 142
Scope of Application Restricted to Physical Safety	p. 143
Scope of Application beyond Physical Safety	p. 144
Availability of the Legal system	p. 144
Legal security as an independent standard	p. 144
Overlap with other Standards	p. 146
Fair and equitable treatment	p. 146
Action in combat	p. 149
Conclusion	p. 150
Indirect Expropriation	p. 151
Introduction	p. 151
The Current State of Affairs Regarding the Doctrine of Indirect Expropriation	p. 152
The Criteria Used to Define Indirect Expropriations	p. 156
The substantiality of the interference: the 'sole effect doctrine'	p. 156
The Durational Aspect	p. 159
Interference by Actions and Omissions	p. 160
The Enrichment of the Host State	p. 160
The intentions of the State	p. 161
Investment-backed expectations of the investor	p. 162
The requirement of proportionality	p. 163
Indirect Expropriation and the State's Right to Regulate	p. 165
Recent Developments	p. 166
Concluding Considerations	p. 167
Legality of Expropriations	p. 171
Introduction	p. 171
Legality Requirements under General International Law	p. 173
Legality Requirements in International Investment Agreements	p. 176
The Interpretation Given to the Legality Requirements in the Practice of Investment Arbitration	p. 178
Public Purpose	p. 178
Non-discrimination	p. 186
Due Process	p. 191
Compensation	p. 194
Implications of the Legality/Illegality of an Expropriation for Remedies	p. 199
Conclusions	p. 204
Capital Transfer Restrictions under Modern Investment Treaties	p. 205
Introduction	p. 205
The Development of International Law on Foreign Exchange Regulation	p. 206
Treatment of Capital Transfer Restrictions under Modern Investment Treaties	p. 213
Application of the Doctrine of Necessity under International Law to Exchange Restriction Measures	p. 217
Exchange Restrictions and Indirect Expropriation	p. 227
Other Investment Obligations, in Particular, Fair and Equitable Treatment	p. 233
Transparency and the Protection of Legitimate Expectations	p. 235
Freedom from Coercion or Harassment	p. 236
Procedural Propriety	p. 237
Protection against Arbitrariness; Discrimination and 'National Treatment'	p. 238
Good Faith	p. 239
Remedies and Compensation	p. 240
Conclusion	p. 242
Bibliography	p. 245
Index	p. 257
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