How Increasing Global Instability Is Causing Expropriation Laws In Bilateral Investment Treaty's To Deter The Global Investment Environment?
- IJLLR Journal
- Jan 31
- 1 min read
Spandan Mehta, Jindal Global Law School
Introduction:
Post-World War II globalization started to take center stage in the world with a clear dichotomy being established. There was an abrupt shift from conflict to collaboration in the world with increasing global trade between nations. There was a clear overhaul of supply chains and consumption patterns in the decades ahead. Subsequently this has allowed for closer coordination between governments of the world and on the back of the same investments were being driven up in various economies which had the potential to grow. Treaties like the Vienna Convention on the Law of the Treaties (VCLT) were put in force alongside formal institutions like the Organization of Economic Co-operation and Development (OECD) developing the Abs-Shawcross draft calling for growing network of foreign investment. A lot of developments were taking place in the postwar era with International Investment Agreements (IIAs) and Bilateral Investment Treaties (BITs) being signed left right and center, naturally disputes were bound to arise particularly in distressed states who till date resort to tactics like expropriation of foreign assets to protect their vested interests. These actions led to the development of expropriation related clauses in BITs which refrained from the exercise of taking assets from other states so as to ensure investor confidence, particularly in developing countries.
