
Contents
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4.1 Introduction: The Treatification of International Investment Law 4.1 Introduction: The Treatification of International Investment Law
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4.2 Historical Background of the Treatification Process 4.2 Historical Background of the Treatification Process
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(a) The early beginnings (a) The early beginnings
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(b) The emergence of a treaty framework for investment protection in the seventeenth and eighteenth centuries (b) The emergence of a treaty framework for investment protection in the seventeenth and eighteenth centuries
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(c) Further developments in the eighteenth, nineteenth, and early twentieth centuries (c) Further developments in the eighteenth, nineteenth, and early twentieth centuries
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(d) From World War I until World War II (d) From World War I until World War II
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(e) The immediate aftermath of World War II (e) The immediate aftermath of World War II
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(f) The later post-World War II years (f) The later post-World War II years
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(i) Bilateral efforts (i) Bilateral efforts
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(ii) Multilateral efforts (ii) Multilateral efforts
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(g) The development of the bilateral investment treaty and the creation of the International Centre for Settlement of Investment Disputes (g) The development of the bilateral investment treaty and the creation of the International Centre for Settlement of Investment Disputes
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(h) The gathering momentum of the BIT movement (h) The gathering momentum of the BIT movement
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(i) The development of multilateral regional and sectoral investment agreements (i) The development of multilateral regional and sectoral investment agreements
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(i) Arab States Investment Agreement (i) Arab States Investment Agreement
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(ii) Islamic States Investment Agreement (ii) Islamic States Investment Agreement
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(iii) ASEAN Comprehensive Investment Agreement (iii) ASEAN Comprehensive Investment Agreement
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(iv) Mercosur investment treaties (iv) Mercosur investment treaties
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(v) COMESA Treaty (v) COMESA Treaty
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(vi) North American Free Trade Agreement (vi) North American Free Trade Agreement
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(vii) The Energy Charter Treaty (vii) The Energy Charter Treaty
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(viii) Dominican Republic–Central America–United States Free Trade Agreement (viii) Dominican Republic–Central America–United States Free Trade Agreement
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(j) The evolution of BIT provisions into free trade agreements (j) The evolution of BIT provisions into free trade agreements
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(k) Efforts at a global treaty on investment (k) Efforts at a global treaty on investment
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(l) The trend towards regional and inter-regional trade and investment treaties (l) The trend towards regional and inter-regional trade and investment treaties
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(m) Conclusion (m) Conclusion
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4.3 The Objectives of the Movement to Negotiate Investment Treaties 4.3 The Objectives of the Movement to Negotiate Investment Treaties
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4.4 Primary Objectives of Investment Treaties 4.4 Primary Objectives of Investment Treaties
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(a) Investment protection (a) Investment protection
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(b) Investment promotion (b) Investment promotion
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4.5 Secondary Objectives of Investment Treaties 4.5 Secondary Objectives of Investment Treaties
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(a) Market liberalization (a) Market liberalization
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(b) Relationship building (b) Relationship building
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(c) Domestic investment encouragement (c) Domestic investment encouragement
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(d) Improved governance and a strengthened rule of law (d) Improved governance and a strengthened rule of law
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4.6 Long-Term Goals of Investment Treaties 4.6 Long-Term Goals of Investment Treaties
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4.7 The Treaty Negotiation Process 4.7 The Treaty Negotiation Process
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(a) Bilateral negotiation processes (a) Bilateral negotiation processes
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(b) Multilateral negotiation processes (b) Multilateral negotiation processes
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4.8 The Consequences of Investment Treaties 4.8 The Consequences of Investment Treaties
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(a) Investment protection (a) Investment protection
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(b) Investment promotion (b) Investment promotion
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(c) Economic liberalization (c) Economic liberalization
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(i) An absolutist evaluation of liberalization (i) An absolutist evaluation of liberalization
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(ii) A relativist evaluation of liberalization (ii) A relativist evaluation of liberalization
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(d) Conclusion (d) Conclusion
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4 A History of International Investment Treaties
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Published:May 2015
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Abstract
Since the inception of international investment, foreign investors have sought assurances from the sovereigns in whose territory they invest that their interests will be protected from negative actions by the sovereign and local individuals. This chapter begins with a historical background of the treatification process, which came about due to the perceived weaknesses of customary international law applying to foreign investments. It then discusses the objectives of the movement to negotiate investment treaties; the primary and secondary objectives of investment treaties; long-term goals of investment treaties; the treaty negotiation process; and the consequences of investment treaties, including the growth in investor–state arbitration cases to settle investment disputes.
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