Re-thinking the requirement of making an investment in accordance with domestic laws as a substantive right and a cause of action for host states under the BITs
DOI:
https://doi.org/10.18272/iu.v22i22.1188Keywords:
Investment, Host State Law, Substantive Right, Investment Arbitration, ICSID, BITAbstract
This paper challenges one of the most traditional notions in international investment arbitration, which is that host states don"™t have any substantive rights under the BIT"™s framework. This work"™s thesis is that the current BIT framework actually grants the host state a substantive right, and therefore a cause of action in the investment arbitration system. This right emanates from the requirement that the investment must be in accordance with the host state"™s law. The paper explains that there"™s a line of both BITs and ICSID cases that hold the requirement of compliance with the host state"™s laws as autonomous, and that this autonomy imports a substantive right for the host states grounded solely in the BITs. This idea is also supported by the spirit and objectives of both the ICSID Convention and the BITs.Downloads
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