Source: http://muhaz.org/international-financing-of-foreign-investments.html
Timestamp: 2019-04-23 10:07:43+00:00

Document:
ICSID (1965): mediation and arbitration institution, infra.
Why may domestic law (of the host state) be problematic ?
mainly to protect national defense, critical infrastructure, etc.
Can international investment contracts help ?
Applicable law: domestic law or international public law ? quasi-international law ?
lot of disputes as to what amounts to expropriation: does it only depend on the effects (Sole Effects Doctrine) or does the protection not apply in case of a proportional measure for a genuine public purpose if investor is treated fair and equitable (no abuse of power)?
Expropriation and international law ?
by the USSR 1917, Latin Am. (Calvo doctrine), developing countries, ….
NEO-Charter proposed to extend the sovereignty to include all economic activities, does not require « public interest », grants only « reasonable » compensation, refuses international procedural control, etc.
Fate of « Extra-EU-BIT’s » after Lisbon Treaty (making FDI an exclusive Union competence): Reg. 1219/2012 - EU intends to replace national extra-EU-Bits’ by common EU-BIT’s (eg negotating a BIT with China since 2013 to replace the 27 existing BIT’s), often in a wider framework (of Partnership agreements or FTA’s covering not only Investment). Duty of MS’s to eliminate incompatibilities.
ECJ 6 March 2018 in C-284/16, Achmea (place of arbitration in Germany, action by Slovakia to set aside award, question from the BGH about compatibility of compulsory arbitration in intra-EU-BIT with EU law): Compatible according to advocate-general, not according to ECJ. The arbitral tribunal is not a court of a member state or common to member states, nor subject to review by a court of a MS, differing from commercial arbitration, thus no guarantee of full effectiveness of EU law.
Sectorial Multilateral investment treaties ?
E.g. renewable energy investors v. Spain; abolition of subsidies for soalr panles; in one of the cases, decision in 2016 did reject the claims.
Usually not fully liberalised. In CETA art. 8.4.
Usually no full national treatment, but a MFN clause + minimum standard of «proper & equitable» treatment. See art. 3 BLEU-China BIT: national treatment + MFN; CETA art. 8.6 and 8.7.
Comp. Art. 1 OECD Draft: ensure fair and equitable treatment to foreign property.
Stabilisation clauses (later regulation cannot negatively affect the investment); observance clauses (later regulations not applicable); also called ‘umbrella clause’ (giving an umbrella to certain obligations). Comp. Art.2 Draft OECD (‘Observance of undertakings’); art. 7 BLEU-China BIT.
Usually rules on protection in case of expropriation. Comp.
Art.3 Draft OECD (protection against takings of property: must be in the public interest, under due process of law, non-discriminatory, just compensation (genuine value, quick, and transferable).
Art. BLEU-China BIT: merely under domestic legal procedure, non-discriminatory, just compensation (genuine value, quick and transferable); no public interest requirement.
Is protection also given to intellectual property rights ?
Capital transfer guarantees (free movement of capital, ‘free transfer of payment’) (some conflicts with EU law). In the OECD Draft only a recommendation. Free transfer in art. 5 BLEU-China BIT.
Legal certainty is low, because of vague standards; however legal certainty under property protection in EU law or MS law may be even lower.
Some elements in investment treaties, Free Trade Agreements etc.
Arbitration may be under the ICSID rules (infra) or under UNCITRAL rules (see Ch. 12).
now 150 ratifications (+ 9 signatures); became much more important since the 1990’s. Canada ratified Nov 2013 (after solving federalism problem). Missing: Russia (not ratified), i.a. India, Brazil, South Africa (not signed); Withdrawal by Ecuador, Bolivia, Venezuela.
Awards are published in annual Reports.
Claimants: mostly big business, but ca 22 % are SME’s.

References: v. 
 art. 8
 art. 3
 art. 8
 Art. 1
 Art.2
 art. 7

Art.3
 art. 5