Criteria for determining the investment contract in foreign investment arbitration

دانشنامه حقوق اقتصادی

Volume 28, Issue 19, February 2022, Pages 292-317   

Document Type: Scientific research

DOI: 10.22067/lowecon.2022.41779

Authors

, Rahim Baghban^* ; , Hadise Yekta

Abstract

Sources and basics of foreign investment law are mostly seen in bilateral and multilateral treaties and international arbitration procedures. Thereupon, some questions arise: What is the notion of foreign investment and what are its criteria? What contracts could be considered as investment? And, what about the sale contracts? For discovering the criteria of investments, at first is reffered to the criteria mentioned in Washington convention, and then to the criteria in important arbitrations on foreign investments.
Library method was used in this research, while, by referring to theoretical discussions, arbitrational procedures for discovering the methods and criteria for investment contracts were considered.
The results indicated that three main criteria - participation, specified period of time, and risk - make the nucleus of a foreign investment, in addition to which the objectives mentioned in Article 25 of ICSID Convention and bilateral investment treaties should be considered. Regarding sale contracts, arbitration procedures say that the simple contracts aren’t in conformity with the objectives of Washington Convention. But this approach can’t be extended to all the sale contracts

Keywords

investment arbitration; ICSID; investment contract

References

 

References

Pooresmaeeli, A. (2017). Investment Rules in World Trade Organization. Mizan Law Foundation. (in Persian)

Jafari Nodooshan, Sh. (2018). The Law of Dispute Resolutions in Foreign Investments. Mizan Law Foundation. (in Persian)

Shiravi, A. (2015). The International Trade Law. (in Persian)

Asgari, P. (2015). The Foreign Investment Law in International Arbitration Procedures. Shahr-e-Danesh. (in Persian)

Ghanbari Jahromi, M. J. (2011). International Investment Law. Jungle Publishing. (in Persian)

Mirveisi, A. (2014). The Foreign Investment Law in the Framework of Bilateral Investment Treaties. Pardis Publishing. (in Persian)

 

منابع انگلیسی

- Boooks

[7] Andrea, k. Bjorklund.,2012, Investment Teaty Arbitral Decisions as Jurisprudence constant, Uc Davis, Legal studies Research Papers, No. 158.

[8] Campbell McLachlan., 2007, Laurence shore and Matthew weiniger, International Investment Arbitration: Substantive principles (OUP): Reed Paulsson and Blackaby.

[9]  Schreuer, D. & C., 2008, Principles of International Law, OUP.

[10] Jeffery, P Commission., 2017, Precedent in Investment Treaty Arbitration- A Citation Analysis of a Developing Jurisprudence, 24(2), Journal of International Arbitration.

[11] Jeswald, W., Salacuce, 2004, Towards a Global Treaty on foreign Investment: The search for a Grand Bargain, in Norbert Horn and Stefan M. Kröll (eds), Arbitrating Foreign Investment Disputes: Procedural and Substantive Legal Aspects (Kluwer Law International).

[12] Jezewski, 2018, There is No Freedom without Solidarity: Towards a New Definition of Investment in International Economic Law,Working Paper No 51/08, SIEL Inaugural Conference .

[13] Schreuer, Diversity and Harmonization of Treaty Investment Treaty Arbitration.

[14]  Sornarajah, 2010, The international Law on Foreign Investment (3rd edn, CUP).

[15]  Yannaca - Small, 2010, Difinition of “Investment” An open-ended search for a Balanced Approach. In Katia Yannaca- Small  (ed), Arbitration Under International Investment agreements: A Guide to the key Issues OUP.

[16]  Douglas, Z., 2016, The International Law of Investment Claims (CUP).

[17] Jandevelde, j. K., 2010, Bilateral Investment Treaties: History, Policy and Interpretation, oxford, p. 122.

[18] Rubins, N., 2004, The Notion of Investment in International  Investment Arbitration Foreign Investment Disput, Kluwer, p. 283.

[19] Jandevelde, j. K., 2010, enneth, Bilateral Investment Treaties: History, Policy and Interpretation, oxford, p. 122.

[20] Rubins, N., 2004, The Notion of Investment in International  Investment Arbitration Foreign Investment Disput, Kluwer, p. 283.

 

- Articles & Cases

[21] Amazu A. Asouzu., 2004,  International Commercial Arbitration and African States Practice, Participation and Institutional Development (CUP).

[22] Azurix Corp. V. Argentine Republic, ICSID Case No. ARB/01/12 (Decision on Jurisdiction, 8 December 2003) 43 ILM (2004).

[23] Bayindir Insaat Turizm Ticaret ve Sanayi A.S, v. Islamic Republic of Pakistan, ICSID Case No. ARB/03/29 (Decision on Jurisdiction, 14 November 2005) accessed 15 sep‌2018.

[24] Ceskoslovenska Obchodni banka, a.s. v. Slovak Republic, ICSID Case No. ARB/97/4 (Decision on objections to Jurisdiction, 24 May 1999) 14 ICSID Review accessed 15 sep‌2018.

[25]  Convention on the  settlement of investment disputes between states and national of other states (ICSID convention) 18 March 1965.

[26]  CSOB v Slovakia (n18) para 72. Franz Sedelmaver v Russian Federation, Germany-Russia BIT ad Hoc Arbitration (Award, 7 july 1998) accessed 15 Sep 2018.

[27]  D`Alessio, 2008, A comment on ICSID`s jurisdictional issues: Problems Solutions and Recommendations for a Better Understanding in International Commercial Relations (Research paper, Vrije Universiteit Amsterdam).

[28] Ernon corporation and ponderosa Assets, L.P.V. Argentina, ICSID Case No. ARB/01/3, Decision on jurisdiction, 14 January 2004.

[29] Fakes V. Republic of Turkey, ICSID Case No. ARB/07/20 (Award, 14 July 2009) accessed 15 May 2012.

[30] Fedax N.V. v.Republic of Venezuela. ICSID Case No. ARB/96/3 (Decision on Objections to Jurisdiction, 11 July 1997).

[31] Gami Investment, 2004, Inc. V. Mexico, UNITRAL, (NAFTA), Final Award, 15 November.

[32]Grand River Enter‌prises six Nations, Ltd, et al.V.United states of America, NAFTA / UNCITRAL Arbitration Rules (Award 12 January 2011).

[33] Jan de Nul N.V. and Dredging International N.V. v. Arab Republic of Egypt, ICSID Case No. ARB/04/13 (Decision on Jurisdiction, 16 June 2006) accessed 15‌sep 2018.

[34] Joy Mining Machinery Limited v. Arab Republic of Egypt, ICSID Case No. ARB/03/11 (Award, 6 August 2004) accessed 15‌sep 2018.

[35]  Kenneth J. V., 2000, ‘The Economics of Bilateral Investment Treaties’, 41 Harvard International Law Journal.

[36] Malaysian Historical Salvors, SDN, BHD v. Malaysia, ICSID Case No. ARB/05/10 (Decision on the Application for Annulment. 16 April 2009) accessed 15 sep‌2018.

[37] Mortenson, 2010, The Meaning of “Investment” ICID`s Travaux and the Domain of International Investment Law` Harvard International Law Journal,  No. 157.

[38] Patrick Mitchell v., 2018, Democratic Republic of the Congo, ICSID Case No. ARB/99/7 (Decision on the Application for the Annulment of the Award. 1 November 2006) accessed 15 sep‌.

[39] Petrobart Ltd v Kyrgyz Republic, SCC Arbitration Institute Arbitration No. 126/2003 (Award, 29 March 2005) Accessed 15 sep 2018.

[40] Phoenix Action Ltd v. Czech Republic, ICSID Case No.‌(Award,‌15‌‌‌‌April 2009)‌accessed 15‌sep 2018.

[41] Pluma consortium limited v Bulgaria, ICSID case NO. ARB/03/24, Pecision on Jurisdiction, 8 February, 2005.

[42] Saba Fakes v. Turkey (n 20) para 96.

[43]  Salini Costruttori S.P.A.and Italstrade S. P. A.V. Kingdom of Morocco, ICSID Case No. ARB/00/4 (Decision on Jurisdiction, 23 July 2001).

[44] Szasz, 1968, A Practical Guide to the Convention on settlement of Investment Disputes, 1 Cornell International Law journal.

[45] The Washington Convention on the settlement of Investment Disputes between states and Nationals of other states. (adopted 18 march 1965, entered into force 14 October 1966).

[46] US- Argentina BIT.