
Published:
12 July 2007
Online ISBN:
9780191773679
Print ISBN:
9780199227969
Contents
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(1) The Development of International Standards (1) The Development of International Standards
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(a) The Andean Common Market (ANCOM) (a) The Andean Common Market (ANCOM)
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(b) The OECD Guidelines on Multinational Enterprises (b) The OECD Guidelines on Multinational Enterprises
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(c) The Draft UN Code of Conduct on Transnational Corporations (c) The Draft UN Code of Conduct on Transnational Corporations
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(d) The Contribution of the World Bank: The 1992 Guidelines on the Treatment of Foreign Direct Investment and Standard Setting by MIGA (d) The Contribution of the World Bank: The 1992 Guidelines on the Treatment of Foreign Direct Investment and Standard Setting by MIGA
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(e) The Failure of Recent Initiatives to Adopt Multilateral Investment Rules (e) The Failure of Recent Initiatives to Adopt Multilateral Investment Rules
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(2) The Content of International Investment Agreements (2) The Content of International Investment Agreements
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(a) Preamble (a) Preamble
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(b) Provisions Defining the Scope of Application of the Treaty (b) Provisions Defining the Scope of Application of the Treaty
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(i) Subject–Matter Covered (i) Subject–Matter Covered
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Definition of ‘Investments’ to Which the IIA Applies Definition of ‘Investments’ to Which the IIA Applies
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The Admission of Investments The Admission of Investments
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Applicability to Investments Made Prior to the Conclusion of the Treaty Applicability to Investments Made Prior to the Conclusion of the Treaty
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(ii) Covered Persons and Entities (ii) Covered Persons and Entities
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(iii) Territorial Application (iii) Territorial Application
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(iv) Temporal Application (iv) Temporal Application
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(c) Standards of Treatment (c) Standards of Treatment
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(i) General Standards of Treatment (i) General Standards of Treatment
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Fair and Equitable Treatment Fair and Equitable Treatment
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National Treatment National Treatment
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Most Favoured Nation (MFN) Standard Most Favoured Nation (MFN) Standard
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The Observance of Obligations The Observance of Obligations
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(ii) Specific Standards of Treatment (ii) Specific Standards of Treatment
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Free Transfer of Payments Free Transfer of Payments
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Compensation for Losses Due to Armed Conflict or Internal Disorder Compensation for Losses Due to Armed Conflict or Internal Disorder
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Compensation for Expropriation Compensation for Expropriation
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Other Specific Standards Other Specific Standards
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(d) Dispute Settlement Clauses (d) Dispute Settlement Clauses
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(i) Disputes Between the Contracting Parties (i) Disputes Between the Contracting Parties
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(ii) Disputes Between the Host State and the Foreign Investor (ii) Disputes Between the Host State and the Foreign Investor
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(3) The Effect of IIAs in the National Legal Systems of the Parties (3) The Effect of IIAs in the National Legal Systems of the Parties
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Concluding Remarks Concluding Remarks
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Chapter
17 The Codification of International Standards For the Treatment of Foreign Investors
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Peter T Muchlinski
Peter T Muchlinski
Professor in International Commercial Law, School of Law, The School of Oriental and African Studies, University of London
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Pages
653–702
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Published:July 2007
Cite
Muchlinski, Peter T, 'The Codification of International Standards For the Treatment of Foreign Investors', Multinational Enterprises & the Law, 2nd Edition, Oxford International Law Library (2007; online edn, Oxford Academic), https://doi.org/10.1093/law:iic/9780199227969.chapter.17, accessed 8 May 2025.
Extract
The aim of this chapter is to consider attempts at the codification of agreed international standards by which relations between MNEs and host states can be regulated. Such attempts have been made in the context of conflicts between states over the content and legal validity of international minimum standards for the treatment of aliens and their property, already briefly discussed in chapter 15.1 The result of these conflicts has been uncertainty as to the content of customary international law in the field of foreign investment. Indeed, in the case, the ICJ maintained that there was no single accepted body of international law that laid down universally accepted standards for the treatment of foreign investors by host states.2 The Court saw the reason for this as lying in a period of ‘an intense conflict of systems and interests’ between states, from which no generally accepted rules of international law in the field could emerge on the basis of an opinio juris among states. Such standards as applied were the product of bilateral agreements between states and, therefore, could not bind other states.
Barcelona Traction
Keywords:
Multilateral Investment Guarantee Agency, World Trade Organization, International Centre for Settlement of Investment Disputes, , Organisation for Economic Co-operation and Development, International minimum standard, Investor, Foreign Direct Investment, Fair and equitable treatment standard, Most-favoured-nation treatment (MFN)
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