Externalization of Effective Legal Protection against Indirect Expropriation

Externalization of Effective Legal Protection against... and INTRODUCTION In recent years, direct expropriation' has rarely been seen. States which wish to import capital do not like to be associated with posing a permanent, non-calculable threat to foreign-owned property but prefer to present themselves as places with very stable, reliable and orderly regulatory environments.2 Expropriation, however, has by no means vanished; its execution has just become more subtle. Ambiguous or generously worded laws are "interpreted" in the way that suits certain groups in the government or only enforced when it suits a particular interest; administrative discretion is influenced by factors unrelated to the matter at issue, or administrations fail to conduct their processes in a transparent and comprehensible way. All these measures, turned against a foreign investor, can easily drive him out of business. Virtually all bilateral investment treaties (BITS) and multilateral investment agreements (MITS), therefore, reflect this development and also cover acts of State which may expropriate "indirectly through measures tantamount to expropriation or nationalisation"3 (indirect expropriation�). Moreover, many international investment agreements (IlAs) not only provide rules on (indirect) expropriation but also establish so-called treatment standards "which refer to the legal regime that applies to investments once they have been admitted by the host http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of World Investment and Trade Brill

Externalization of Effective Legal Protection against Indirect Expropriation

Journal of World Investment and Trade, Volume 7 (1): 25 – Jan 1, 1

Loading next page...
 
/lp/brill/externalization-of-effective-legal-protection-against-indirect-y8kZwETMWt
Publisher
Brill
Copyright
Copyright © Koninklijke Brill NV, Leiden, The Netherlands
ISSN
1660-7112
eISSN
2211-9000
DOI
10.1163/221190006X00117
Publisher site
See Article on Publisher Site

Abstract

and INTRODUCTION In recent years, direct expropriation' has rarely been seen. States which wish to import capital do not like to be associated with posing a permanent, non-calculable threat to foreign-owned property but prefer to present themselves as places with very stable, reliable and orderly regulatory environments.2 Expropriation, however, has by no means vanished; its execution has just become more subtle. Ambiguous or generously worded laws are "interpreted" in the way that suits certain groups in the government or only enforced when it suits a particular interest; administrative discretion is influenced by factors unrelated to the matter at issue, or administrations fail to conduct their processes in a transparent and comprehensible way. All these measures, turned against a foreign investor, can easily drive him out of business. Virtually all bilateral investment treaties (BITS) and multilateral investment agreements (MITS), therefore, reflect this development and also cover acts of State which may expropriate "indirectly through measures tantamount to expropriation or nationalisation"3 (indirect expropriation�). Moreover, many international investment agreements (IlAs) not only provide rules on (indirect) expropriation but also establish so-called treatment standards "which refer to the legal regime that applies to investments once they have been admitted by the host

Journal

Journal of World Investment and TradeBrill

Published: Jan 1, 1

There are no references for this article.

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off