Investment treaties are instruments of economic governance at the heart of international arbitration and current policy debates. After the Second World War, many states agreed to minimum standards of conduct towards foreign investors to promote capital inflows in the face of political risks. Today, the standards contained in nearly 3,000 bilateral treaties (or chapters in trade agreements) serve to delimit the lawful exercise of governmental authority from a state’s international responsibility to make reparation for injury to investors, usually in the form of compensation. These treaties typically include each state’s consent to arbitration on the notice of any protected investor, known as investment treaty arbitration or investor-state dispute settlement (ISDS). With around 1,500 cases, investment treaty arbitration has become an important vehicle for the development of international law. At the same time, diverse voices have protested the alleged chilling effect of large compensation awards on public interest regulation, not least amid the renewable energy transition, whilst there are live debates among governments as to the future law and procedure of foreign investment disputes.
The aim of the course is to introduce students to international investment law, focusing on the rules of public international law that regulate foreign investments and are applied by arbitral tribunals in investment treaty disputes. The course has five main elements: (1) the historical, theoretical and policy background behind investment treaties and dispute settlement by arbitration; (2) the rules governing jurisdiction and admissibility of investor-state arbitration cases; (3) the substantive principles and standards – such as national treatment, most-favoured-nation treatment, expropriation, protection of contracts by umbrella clauses, and the minimum standard in international law – that may apply to investor-state relationships; (4) annulment, recognition and enforcement of arbitral awards and the interaction between international tribunals and national courts; and (5) the discussion of the future of international investment law.
Lecturer: Dr Oliver Hailes
Module Code: LL430E