18 Pages Posted: 20 Apr 2016 Last revised: 29 Jun 2016
Date Written: April 18, 2016
The paper critically assesses the definition of indirect expropriation included in the recent EU proposal for an investment chapter within the context of the TTIP negotiation. The paper argues that, while the EU proposal is likely to have narrowed the scope of the concept of indirect expropriation, in terms of providing ‘greater clarity’, we are not there yet. Like similar attempts before it, the EU proposal refers to different legal approaches without sufficiently clarifying their content and relationship. While this lack of clarity shows the indecision among policy makers, including the EU, about where to draw the line between an indirect expropriation (that entails compensation) and a legitimate regulatory measure (that does not), it ultimately suggests that there are still doubts about the proper function of international investment law.
Keywords: Investment treaties, indirect expropriation, annex on expropriation, TTIP
JEL Classification: K33, K40
Suggested Citation: Suggested Citation
Ortino, Federico, Defining Indirect Expropriation: The TTIP Approach and the (Elusive) Search for ‘Greater Certainty’ (April 18, 2016). King's College London Law School Research Paper No. 2016-17. Available at SSRN: https://ssrn.com/abstract=2766366