International Investment Agreement (IIA) and the Protection of the Environment in Thailand

Abstract

Thailand allegedly broke the International Investment Agreement (IIA) because it did not protect the host state, and investment arbitration in the country was negatively affected by the decision in the case of Walter Bau AG versus Thailand. The country should prepare itself to understand international investment law in the IIA, particularly with regard to the environment. This article aims to explain the problem of environmental protection in Thailand in relation to Thailand’s model IIA. Furthermore, it is necessary to establish general principles regarding the protection of the environment in terms of international investment law and legal problems in the interpretation of IIAs. De lege ferenda is also recommended for Thailand‘s model IIA to be amended in order to add a clause about the protection of the environment, which may be applicable under international law and the IIA as an interpretation mechanism. This is to amend the obligations and social responsibilities of foreign investors to protect the environment in Thailand as the host state.

Keywords: IIA, environment, investment, Thailand, host state, arbitration