Rule of Law as it Relates to International Investment Agreements (IIAs)
5 Pages Posted: 1 Jul 2017
Date Written: June 29, 2017
This article is part 2 of a series on Rule of Law as it relates to international investment issues. The article describes how the system of bilateral investment treaties and other international investment agreements have created a form of rule of law to protect foreign investors against certain types of actions by host state government, such as illegal expropriation, currency restrictions, licence cancellations unless these actions comply with concepts of rule of law.
It suggests that the rule of law that is brought about through this system of BITs is a one-way street, giving protections to investors, without imposing obligations on them – the host state government has the power, and the obligation under rule of law concepts, to impose such obligations on foreign investors.
Keywords: rule of law, international investment, bilateral investment treaties, arbitration
JEL Classification: K22,K33
Suggested Citation: Suggested Citation