Proper Interpretation of Corporate Nationality under International Investment Law to Prevent Treaty Shopping

Contemporary Asia Arbitration Journal, Vol. 6, No. 1, pp. 49-74, May 2013

26 Pages Posted: 5 Jun 2013

Date Written: May 29, 2013

Abstract

In order to solve the problem of treaty shopping, drafters of some investment treaties introduced the Control Rule into the definition of investors. Some treaty drafters also inserted the Denial of Benefits Clause to confine the scope of eligible investors. However, neither of them is workable under the tendency of broadly defined scope of investors in modern investment treaties. It is desirable to enhance the method of treaty interpretation by arbitral tribunals to prevent treaty shopping. The Denial of Benefits Clause should also be modified for such purpose.

Keywords: treaty shopping, Control Rule, Denial of Benefits Clause, treaty interpretation

Suggested Citation

Zhang, Xiao-Jing, Proper Interpretation of Corporate Nationality under International Investment Law to Prevent Treaty Shopping (May 29, 2013). Contemporary Asia Arbitration Journal, Vol. 6, No. 1, pp. 49-74, May 2013, Available at SSRN: https://ssrn.com/abstract=2273967

Xiao-Jing Zhang (Contact Author)

Liaoning University ( email )

Shenyang, Liaoning
China

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