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    History of International Investment Law.16bbl022

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    juhi
    The early history of international investment law held that foreign assets could not be expropriated by local law as foreigners were subject to the superior law of their home country. However, as territories gained independence, the doctrine of sovereignty gave states the right to expropriate foreign assets as long as compensation was provided. Over time, international law established that foreign investors should receive treatment equal to local investors, including protection under domestic laws. While there were no comprehensive international treaties on investment protection initially, customary international law and state practice helped define minimum standards. Dispute resolution mechanisms also developed, allowing state-to-state arbitration of investment disputes. The Calvo Doctrine further proposed no state should offer foreigners greater protection than its own nation

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    History of International Investment Law.16bbl022

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    juhi
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    The early history of international investment law held that foreign assets could not be expropriated by local law as foreigners were subject to the superior law of their home country. However, as territories gained independence, the doctrine of sovereignty gave states the right to expropriate foreign assets as long as compensation was provided. Over time, international law established that foreign investors should receive treatment equal to local investors, including protection under domestic laws. While there were no comprehensive international treaties on investment protection initially, customary international law and state practice helped define minimum standards. Dispute resolution mechanisms also developed, allowing state-to-state arbitration of investment disputes. The Calvo Doctrine further proposed no state should offer foreigners greater protection than its own nation

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    HISTORY OF INTERNATIONAL INVESTMENT LAW.16BBL022

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    The early history of international investment law held that foreign assets could not be expropriated by local law as foreigners were subject to the superior law of their home country. However, as territories gained independence, the doctrine of sovereignty gave states the right to expropriate foreign assets as long as compensation was provided. Over time, international law established that foreign investors should receive treatment equal to local investors, including protection under domestic laws. While there were no comprehensive international treaties on investment protection initially, customary international law and state practice helped define minimum standards. Dispute resolution mechanisms also developed, allowing state-to-state arbitration of investment disputes. The Calvo Doctrine further proposed no state should offer foreigners greater protection than its own nation

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    © All Rights Reserved
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    112 views1 page

    History of International Investment Law.16bbl022

    Uploaded by

    juhi
    The early history of international investment law held that foreign assets could not be expropriated by local law as foreigners were subject to the superior law of their home country. However, as territories gained independence, the doctrine of sovereignty gave states the right to expropriate foreign assets as long as compensation was provided. Over time, international law established that foreign investors should receive treatment equal to local investors, including protection under domestic laws. While there were no comprehensive international treaties on investment protection initially, customary international law and state practice helped define minimum standards. Dispute resolution mechanisms also developed, allowing state-to-state arbitration of investment disputes. The Calvo Doctrine further proposed no state should offer foreigners greater protection than its own nation

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    HISTORY OF INTERNATIONAL INVESTMENT LAW

    - Juhi Hirani (16BBL022)

    In the early years of the development of international investment law, the position was that no
    state could expropriate or nationalize foreign asset as local law being inferior could not apply to
    the foreigners as they were subject to the superior body of law of their home country.
    With the gaining of independence, territories started relying on the doctrine of sovereignty and
    sovereign equality that every sovereign state had the right to expropriate or nationalise foreign
    assets provided that the foreign investor was provided with compensation. It began to be
    accepted that as per international law, these investors should not be given more protection than
    given to the locals however due to the inferiority of the local law, it was said that the national
    law should be in line with the international minimum standards. The concept of national
    treatment would entitle foreign investors to the same rights and privileges as those enjoyed by
    the nationals of a country. It also brought the doctrine of state responsibility that any alien in the
    territory should be given equal protection of laws. However, since there was no internationally
    negotiated treaty outlining the terms and conditions of protection of foreign investment, one had
    to look at other sources of international law, mainly customary international law, in order to
    ascertain what constituted international law on the subject matter or the international minimum
    standard. An attempt was also done to define international minimum standard in light of the
    general principles of justice and equity and the practice of states on the treatment of foreign
    investment along with existing rules of both the conventional and customary international law of
    human rights.
    The provision for the settlement of international disputes between states by peaceful means by
    the Second International Peace Conference of The Hague in 1907, which adopted the Convention
    on the Peaceful Resolution of International Disputes also initiated the possibility of state-to-state
    arbitration on investment disputes which marked the era of diplomatic protection where it was
    advocated that there is a right of a state to protect its citizens abroad, whether or not there is a
    BIT.
    A leading nineteenth-century Latin American jurist, Carlos Calvo then introduced the idea of
    equality of treatment i.e. no state should be required to offer more protection to foreign investors
    than that accorded to its own nationals. The doctrine was based on the idea that the foreign
    investors to exhaust local remedies prior to resorting to international arbitration or international
    adjudication. The doctrine also ensured that the land and other natural resources belong to the
    state by virtue of the doctrine of sovereignty and no foreign entity can permanently own land in
    the host states.
    At the same time it also became acceptable in international law that states had a right to
    expropriate foreign assets however, expropriations had to be accompanied by prompt, adequate
    and effective compensation which became evident post the Hull formula where the US
    recognised the right of Mexico to expropriate foreign assets for public purposes subject to
    compensation.

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