Abstract
This chapter first examines international documents, customary international law and the predecessor of investment treaties, FCN treaties, to evaluate the international regulation on foreign investment existing before the emergence of the first investment treaties. The evidence shows very limited international agreement on the protection of foreign investment with the insistence of the majority of states on reserving this area to their domestic prerogative. The chapter explores the circumstances of treaty conclusion and treaty provisions in two periods: from the first investment treaties to the first investment treaty arbitration, which was initiated by the end of the 1980s, and from the end of 1980s to present. It also examines a case study: incorporation of the provisions on investor-state arbitration in investment treaties. Treaty provisions have been explored and revived with a new breath, the effects of which have swept over all sovereign territories of signatories.Keywords: FCN treaties; foreign investment; international law; investment treaties; sovereign territories
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