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Breaches of Contract and Breaches of Treaty

Breaches of Contract and Breaches of Treaty... I. INTRODUCTION Foreign investments are often made through a contract between a foreign investor and an entity or instrumentality of the host State. The promotion and protection of such investments is consistent with the object and purpose of investment treaties. In numerous cases, disputes between investors and host States under investment treaties arise out of breaches of underlying contracts. Public information regarding these arbitrations is limited. A quick review of the International Centre for Settlement of Investment Disputes (ICSm) sources suggests, however, that in approximately ninety to one hundred cases registered with ICSID since 1 January 1997, ICSID jurisdiction was asserted based on a provision in an investment treaty and roughly one half of them appear to have involved underlying contractual breaches. The recent decisions of the ICSID Tribunals in SGS v. Pakistanl and SGS v. Philippines' have brought to the forefront the question as to whether an international arbitration tribunal constituted under an investment treaty has the authority to exercise jurisdiction over claims for breaches of a contract between a foreign investor and a State.3 These Decisions have been the subject of ongoing discussions as a result of the two Tribunals' contradictory holdings on this issue. This http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of World Investment and Trade Brill

Breaches of Contract and Breaches of Treaty

Journal of World Investment and Trade , Volume 5 (4): 571 – Jan 1, 2004

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Publisher
Brill
Copyright
Copyright © Koninklijke Brill NV, Leiden, The Netherlands
ISSN
1660-7112
eISSN
2211-9000
DOI
10.1163/221190004X00380
Publisher site
See Article on Publisher Site

Abstract

I. INTRODUCTION Foreign investments are often made through a contract between a foreign investor and an entity or instrumentality of the host State. The promotion and protection of such investments is consistent with the object and purpose of investment treaties. In numerous cases, disputes between investors and host States under investment treaties arise out of breaches of underlying contracts. Public information regarding these arbitrations is limited. A quick review of the International Centre for Settlement of Investment Disputes (ICSm) sources suggests, however, that in approximately ninety to one hundred cases registered with ICSID since 1 January 1997, ICSID jurisdiction was asserted based on a provision in an investment treaty and roughly one half of them appear to have involved underlying contractual breaches. The recent decisions of the ICSID Tribunals in SGS v. Pakistanl and SGS v. Philippines' have brought to the forefront the question as to whether an international arbitration tribunal constituted under an investment treaty has the authority to exercise jurisdiction over claims for breaches of a contract between a foreign investor and a State.3 These Decisions have been the subject of ongoing discussions as a result of the two Tribunals' contradictory holdings on this issue. This

Journal

Journal of World Investment and TradeBrill

Published: Jan 1, 2004

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