Customary International Law, Treaty Law, BITS and International Investment: Why Understanding These Issues is Important to Foreign Investors

Abstract

The concept of customary law is often considered to be of academic interest primarily, without real importance to foreign investors. This article describes important aspects of CIL, as they relate particularly to expropriation, and why understanding them is an important risk assessment issue for foreign investors.

Additionally, the article looks at whether bilateral Investment treaties are impacting on CIL in the realm of foreign investment, and why that may be of great significance to investors also.

Keywords: foreign investment, customary international law, expropriation, BITS

JEL Classification: F23, K33, M14, M16