International Investment Law in Transition (Introduction)
in Jose E. Alvarez and Karl P. Sauvant, with Kamil Gerard Ahmed and Gabriela del P. Vizcaino, eds., The Evolving International Investment Regime: Expectations, Realities, Options (New York: Oxford University Press, 2011), pp. xxxi-xlii
12 Pages Posted: 26 Jul 2018
Date Written: 2011
The international investment regime is in a phase of transition, and emerging market MNEs will likely bear on the evolution. Bilateral investment treaties (BITs) and free trade agreements (FTAs) have been the instrument of choice to pursue the right of establishment and investor protection by developed countries. These agreements aim to protect both investors’ and governments’ power to regulate. However, the increasing complexity of the international investment regime requires several considerations, such as governments’ increased screening of FDI projects, “essential security” concerns, political climates fostering protectionist behavior, and the relatively sudden spurt in investor-state disputes. While the investor-state dispute-settlement mechanism has helped address some issues, the mechanism faces criticisms as it has created inconsistent rulings and placed states on the defensive. In the context of this transition, will emerging players, many of which include state-owned entities, be accepted on equal terms by developed countries and their MNEs? This overview is part of a book that contains chapters by Roberto Echandi; Howard Mann; Peter T. Muchlinski; Stanimir A. Alexandrov; Susan D. Franck; Petros C. Mavroidis; John Cobau; Nassib G. Ziadé; John H. Dunning and Sarianna M. Lundan; Rainer Geiger; Brigitte Stern; James Zhan, Jorg Weber and Joachim Karl; and Andrea K. Bjorklund.
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