Summary
Summary Readings Week 2
- Course
- Institution
- Book
Mandatory Readings Week 2 for the Course International Investment Law. Summary of the Book chapters provided for this week.
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Readings Week 3
-
Readings Week 4
-
Readings Week 5
Seller
Follow
rx
Content preview
International Investment LawReadings 2: Defnitions
Mandatory Reading Material
Schefer, ‘International Investment Law’
Chapter 3: Defintniin
3.1 Introduction
What is an investment and who is an investor? critical elements
in ensuring investment protection because they defne who can
invoke treaty provisions etc.
3.2 What is an investment in international investment law?
3.2.1 The concept of ‘an investment’
If there is no investment, there is no jurisdiction/competence for the
tribunal
Traditional approach (CIL): ‘property, rights and interests’, but
changed by the 1960s ‘investment’
No clarity on the defnition of investment until the 1990s when
questions arose on what IIAs should cover and what then
investments were
3.2.2 Defnition of investment
By defning investment in the treaty, countries had freedom in
defning investment themselves where the term was ambiguous,
tribunals could step in to interpret the precise extent of the host’s
obligations
IIAs defned it general defnition plus an illustrative list of
activities
ICSID no defnition in the convention, so tribunals are free to
determine what an investment contains and whether the provisions
of the IIA should apply alongside the case law defnition of
investment in ICSID
a. International Investment Agreements (IIAs)
1
, Asset-based approach = safeguarding foreigners’ property and
rights, broad and illustrative list, non-exhaustive
Enterprise-based approach = ownership of or control over a
business entity or portion thereof, more limited approach, often
found in FTAs, excluding real estate and portfolio shares
Fedax NV v. Republic of Venezuela
Dutch corporation in Venezuela Fedax got paid by receiving
promissory notes Venezuela refused to pay the interest or the
principal on the notes, to which Fedax objected
Tribunal had to answer whether fnancial instruments qualify as an
investment broad meaning (asset-based), analysis of current
treaty practice and foreign relations of the European Communities
and multilateral institutions
Analysis of the exclusions made by Venezuela and that it had made
them explicit every time it wanted to exclude something
Conclusion: falls within the scope of the investment, with the
investment remaining constant not an occasional arrangements
and are not volatile capital (duration, regularity of proft,
assumption of risk and a substantial commitment and signifcance
for the host State’s development)
Romak SA v. the Republic of Uzbekistan
Romak deliverd 5 deliveries of grain (50.000 tons of wheat) to
Uzkhleboproduct (state-owned company) but refused to pay and
refused to pay award rendered under the Grain and Feed Trade
Association
UNCITRAL Arbitration Rules proceedings instigated, where the
term investment was challenged by Uzbekistan
BIT asset-based approach, non-exhaustive
Not a literal interpretation of the BIT by the tribunal investment
has meaning in itself, literal application disregards Article 31(1) of
the VCLT, distinction between trade and investment
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller rx. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.05. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
52510 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now