International Investment Law Syllabus 576r4x

International Investment Law The subject covers the main principles of international law of foreign investment governing international economic relations between States. Areas covered are the evolution of the law of foreign investment, international efforts to regulate foreign investment, regulation under bilateral investment treaties, free trade agreements and regional trade and investment agreements, and the case law developed by various international courts and tribunals, including the International Centre for the Settlement of Investment Disputes (ICSID). The aim is to provide a thorough understanding of the law of foreign investment and the interplay between law and politics in regulating foreign investment. It also explains the importance of BITs in investment agreements in the absence of comprehensive workable multilateral investment agreement after the failures of OECD, World Bank. The course content is divided into 5 modules. Number of classes 10 to 12 for each module Module 1: Introduction, history, nature and scope      

Meaning and evolution of term investment History of International Investment Laws Conflicting economic theories on foreign investment Sources of laws in international investments Actors in field of foreign investments Risks in international investments

Module 2: Principles of International Investments and state liability  The fundamental principles of the law of foreign investment - Protection against expropriation - Fair and equitable treatment - Full protection and security - National Treatment - The MFN treatment - Non-discrimination and fairness  Nature of control by the host states in international investments

 State responsibility for injury to aliens  The liability of multinational corporations and home state measures

Module 3: Model Laws for International Investments  The international norms on multinational corporations  The UNCTC Draft Code on Multinational Corporations  International investment agreement Draft Model o OECD model o World Bank model o The regional agreements o NAFTA o The ASEAN Agreements  The WTO and foreign investment – TRIMS o Indonesia – Autos case o Committee on Trade Related Investment Measures o Relationship with MFN and National treatment and TRIPS

Module 4: Modes of foreign investments and BITs  Modes of foreign investments o Investment Contracts o State and Private Contracts o Foreign Direct Investments o Portfolio investment  Bilateral investment treaties – Origin, content, significance  Preferential Trade Agreements  Treaties of friendship, commerce and navigation  Reasons for bilateral investment treaties  Features of bilateral investment treaties  Repatriation of profits  Nationalization and compensation  Compensation for destruction during wars and national emergencies  Critique of BITs – Human rights, ineffectiveness

 Draft Model Indian Bilateral Investment Treaty 2015  Law Commission of India Report 260 – analysis of Draft Model Indian Bilateral Investment Treaty 2015

Module 5: Dispute resolution    

Arbitration and the exhaustion of local remedies Arbitration between states International Claims Tribunals – Iran-US Claims Tribunal Investment Arbitration, ICSID, Energy Charter Treaty, AFTA, CAFTA o White Industries Australia Limited v. The Republic of India, UNCITRAL  Political Risk Insurance o MIGA o National Insurance Programmes o Private Investment Insurance o Bilateral Investment Promotion and Protection Agreements (BIPAs)  Succession of governments and bilateral investment treaties Recommended books  M. Sornarajah, The international law on foreign investment, 2nd edition, CUP  Surya P. Subedi, International Investment Law: Reconciling Policy and Principle (Hart Publishing, Oxford, 2008).  J.G. Merrills, International Dispute Settlement, 3rd edn., Cambridge University Press, 2004.  OECD, 2008, International Investment Law: Understanding Concepts and Tracking Innovations  WTO Analytical Index, Volume I, 2007, p 504-516