International Investment Law
Readings 1: Introduction
Mandatory Reading Materials
Schefer, ‘International Investment Law: Text, Cases and Materials’,
Chapters 1 and 2
1. Introduction to the study of international investment law
1. Introduction
IIAs are very apparent, over 2500 in force, diferent types of
treaties but similar provisions, however, there are a lot of
diferences open for debate
Investors use IIAs to challenge foreign states’ sovereign actions
ISDS
2. Why investment law is diferent from other areas of economic
law
Host state = state in which the investment is made
Home state = state of which the investor is a national
Investment = long-term relationship between investor and host
state, whereby the investor gains the possibility of receiving
financial profits, but this profit is dependent on the oficial or
unoficial actions of the government of the host state
Investor has a strong position during the negotiation phase, as the
government of the host state wants the money, but becomes lost as
the implementation of its investment goes wrong
Hence, there is the law of FDI, to regulate shitty situations like this
3. An overview of the history of investment and investment
protection
1. The evolution of international investment law
Greek & Roman law bilateral investment treaties
Middle Ages general principles to govern foreigners, however,
there was droit d’aubain, no right to property for aliens
, De Vattel property as extension of person, and hence also
extension of foreign countries, so one should be courteous towards
it state-to-state dispute settlement
Colonisation capitulation treaties
Mid-nineteenth century development as the corporation as a
legal person and limited liability as a concept
2. The Calvo Doctrine’s challenge to international investment
law
In Europe foreign property owners were protected on the same
level as nationals
South American states began expropriation without compensation
to their European investors, which led to skirmishes in the
international geopolitical sphere resentment among host states,
and the Drago-Porter treaty outlawed the use of force for
investment protection
Bolshevik revolution no more private property in the Soviet
Union minimum standards/national treatment debate Hull-
standards
3. From the New International Economic Order to the
present: FDI as curse, blessing, or simply a fact of global
economic life?
Bretton Woods + UNGA Resolutions + CERDS worsened the
situation of the global South, and hence, there was the NIEO:
fostering the development of the dependency theory centre-
periphery theory with a lot of restrictions on foreign investors
1980s classical theory of investment promoted by the multilateral
financial institutions, where hosts began ofering a lot of benefits in
order to secure foreign investment
Dichotomy: developing countries argued for national treatment
standards of investment protection where in the BIT negotiation
rooms they bind themselves to more-than-minimum commitments to
protect foreign property