Umbrella Clauses in Bilateral Investment Treaties: Of Breaches of Contract, Treaty Violations, and the Divide between Developing and Developed Countries in Foreign Investment Disputes

43 Pages Posted: 29 Aug 2008 Last revised: 26 Feb 2010

Jarrod Wong

University of the Pacific - McGeorge School of Law

Date Written: August 29, 2008

Abstract

The article attached looks at the phenomena of umbrella clauses in bilateral investment treaties, and examines how they can affect otherwise independent investment contracts between host States and foreign investors by moving State-investor disputes out of domestic courts and into international arbitral tribunals. In doing so, it demonstrates how the application of the umbrella clause not only illuminates the differences between breaches of contract and treaty violations, but also reveals the long-standing and continuing conflict between the investment interests of developing and developed countries.

Keywords: Investment, BIT, Bilateral Investment Treaties, Umbrella Clause

JEL Classification: F21

Suggested Citation

Wong, Jarrod, Umbrella Clauses in Bilateral Investment Treaties: Of Breaches of Contract, Treaty Violations, and the Divide between Developing and Developed Countries in Foreign Investment Disputes (August 29, 2008). George Mason Law Review, Vol. 14, 2006. Available at SSRN: https://ssrn.com/abstract=1260897

Jarrod Wong (Contact Author)

University of the Pacific - McGeorge School of Law ( email )

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Sacramento, CA 95817
United States
1(916)7397231 (Phone)
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HOME PAGE: http://www.mcgeorge.edu/x2152.xml

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