International Investment Protection Law and the Conflict of Interests Between State Sovereignty and the Protection of Individual Economic Interests (Internationales Investitionsschutzrecht Im Spannungsverhältnis Von Staatlicher Regelungsfreiheit Und Schutz Wirtschaftlicher Individualinteressen) (German)

Abstract

The 25th of November 2009 denoted the 50th anniversary of the signing of the first worldwide bilateral investment treaty, which was concluded between the Islamic Republic of Pakistan and the Federal Republic of Germany and established to promote and to protect international investment. In consideration of this anniversary, this paper provides a systematic overview of the most recent developments in public international treaty law, particularly in view of the proliferation of conflicting interests between state sovereignty and private economic interests. The subsequent analysis is divided into three sections. Part one provides an overview of the historical development of international investment protection law, examining the diverse historical sources and assessing the gradual progression of bilateral investment treaties (BIT). Part two focuses on the critical examination and the discussion of the dominating and contentious legal doctrines of international investment law: fair and equitable treatment, the admissibility of international investment, legal problem scenarios arising as a result of corruption and fraud in international investment law as well as the question of the extent of standardisation in international investment treaty arbitration. The contributor concludes that contrary to dominating legal perceptions there is some evidence for standardisation in contemporary international investment treaty arbitration. In the third part of the paper the author contextualises the Treaty of Lisbon of 2009 and portrays the European perspective on international investment protection law and the conflict of interests between state sovereignty and the protection of individual economic interests. Particular consideration is addressed to a number of associated sub problems, such as the controversies centred on the distinct legal order of international law and EU law, specifically in relation to the legal problem of the EU subsidy regime and the potential breach of BITs of new EU member countries.