Systemic Integration: An Instrument for Reasserting the State's Control in Investment Arbitration?

27 Pages Posted: 19 Aug 2017

See all articles by Rumiana Yotova

Rumiana Yotova

Faculty of Law, University of Cambridge; University of Cambridge - Lauterpacht Centre for International Law

Date Written: August 1, 2017

Abstract

This chapter argues that systemic integration can be used as an effective tool by States for reasserting their control in investment arbitration, provided this is done with due consideration of the inherent limitations of the principle under international law and within the confines of the processes of interpretation and application of treaties. The chapter begins with outlining the origins, function and application of the principle in general international law. It emphasises the distinction between the role of systemic integration in the interpretation and in the application of treaties. The second part analyses the applicability of systemic integration in investment law. It argues that there are special considerations limiting the application of systemic integration in an investment context. The principle ought to be applied mutatis mutandi given the mixed character of investment arbitration involving a non-State actor who is not a party to the investment treaty. Investment case law indicates that systemic integration is invoked with most success by States reasserting their sovereignty to regulate in accordance with their public policy. Overall, systemic integration is a powerful tool that ought to be used with caution in reasserting control in a process governed by specialised economic treaties and involving a non-State actor.

Keywords: Interpretation and Application of Treaties, Systemic Integration, Investment Law and Arbitration

Suggested Citation

Yotova, Rumiana, Systemic Integration: An Instrument for Reasserting the State's Control in Investment Arbitration? (August 1, 2017). University of Cambridge Faculty of Law Research Paper No. 37/2017. Available at SSRN: https://ssrn.com/abstract=3020166 or http://dx.doi.org/10.2139/ssrn.3020166

Rumiana Yotova (Contact Author)

Faculty of Law, University of Cambridge ( email )

10 West Road
Cambridge, CB3 9DZ
United Kingdom

HOME PAGE: http://https://www.law.cam.ac.uk/people/academic/rv-yotova/4096

University of Cambridge - Lauterpacht Centre for International Law ( email )

Lauterpacht Centre for International Law
5 Cranmer Centre
Cambridge, CB3 9BL
United Kingdom

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