Investment law is composed of three legal sources: international law (especially investment treaties), investment contracts between investors and states, and domestic law.
At the international level, the main legal instruments relating to investment are investment treaties. These primarily aim at protecting the foreign investor in the host state. Today we have a complex web of 3000 such instruments at the bilateral and regional levels. In addition, a wide array of other treaties and international instruments are also relevant for investment, including those on trade, taxation, human rights, labour, the environment, corruption and corporate and social responsibility, among others.
Domestic law applies to and regulates both domestic and foreign investment. It consists of all laws and regulations of the host state, including, for example, investment laws and codes, tax codes, mining and other natural resource laws, as well as environmental laws and labour regulations, to name just few.
The third source of law applicable to investments is the investment contracts concluded between individual investors and the host state. These contracts can be made subject to existing and future domestic law, or can be written so as to override otherwise applicable domestic law (through stabilization and similar clauses). Although investment contracts often contain the most relevant information about the investment, these remain secret in many countries of the world.
Contents
Investment TreatiesSince the early 1990s, countries across the globe have accelerated concluding bilateral and regional investment treaties at a dizzying pace. IISD monitors bilateral and regional investment negotiations and is actively engaged in addressing the sustainable development implications of the disputes that arise from this web of 3000 investment treaties.
Investment Contracts and Domestic Law
The domestic law of the host state and the investment contracts are the primary determinant of whether an investment will, or will not, make a positive contribution to sustainable development in the host state and local community. How they work together is also critical feature in this regard.
Source: http://www.iisd.org
No comments:
Post a Comment