Abstract
The issues discussed in the following article focus on legalregula- tionsregarding bilateral interstatetreaties for thepromotion andprotection of foreigninvestments(inthedoctrineandthepracticeofinternationalinvestment law commonly referred to as 'BITs', hereinafter referred toas 'BITs') that are made by nationals of one state in another state. Subject to this matter, con- tracting states agree to protect investors from the state party in the territory of their country and to arbitrate international investmentdisputes that might arise. Taking this into account theauthors of this article would like to takeup issues concerning bilateral investment treaties in the context of their interpre- tation. Both general problems regarding interpretation ofbilateral investment treaties and specific rules of investment clauses' interpretation are taken into consideration.Simultaneously,inthelastpartofthispaper,theauthorsbriefly indicaterulesfortheinterpretationmadebytheInternationalCentreforSettle- mentofInvestmentDisputes(hereinafterreferredtoas'ICSID'),aninstitution engagedinthesettlementof investmentdisputes,mainly basedonbilateral in- vestmenttreaties. Thespecificity of thesubjectmatter requirestheirthorough and accurate interpretation. Scientifically, it is important whether in relations betweenstates situatedon differentstages of economic development,theinter- pretation confirms their inequality or rather this interpretation tries to restore suchequality.Inaddition,theimpactofregional legal regimes, bindingfor one contractingparty,ontheinterpretationofBITs,appearstobemeaningful.Due tothelimitedscopeofthisstudy,itisdifficulttoprovideclearanswerstothese questions, however - given the on-going development of international cooper- ation and its interdependence - attempts to systematize the mere matter of bilateral treaties' interpretation, inthe authors' opinion are worth studying.
Highlights
Within the framework of deepening economic integration, international economic cooperation relates to the possibility of investing private investment in countries in which the investor does not have its registered office
An encouragement and an incentive for host countries is the fact that the purpose of concluding BITs is to promote economic development through the creation of a more liberal system of international investment; precisely they aim at creating such favourable conditions in order to encourage foreign investors to invest in the market of the host country
Sornarajah, the author of a comprehensive study on the foreign investment issue defines it as an undertaking on a foreign scale based on the transfer of tangible or intangible assets from one country to another to exploit them in the host country in order to produce wealth under full or partial control of the owner of the relevant assets. (Sornarajah, 2010, p. 10)
Summary
Within the framework of deepening economic integration, international economic cooperation relates to the possibility of investing private investment in countries in which the investor does not have its registered office. The countries that were interested in inflow of foreign direct investment have decided to improve both, the situation of investors and their own economic situation This is why agreements concluded with developed countries constituted a kind of a remedy to ensure the improvement of economic conditions based on the principle of the rule of law and ultima ratio the equal treatment. Bilateral treaties for the promotion and protection of foreign investments are international agreements governing pretty narrow subject matter of economic activity. How should they be interpreted? Is it enough to apply general rules of international treaties interpretation based on the general theory of public international law? Are detailed rules for treaties’ interpretation required because of their characteristics? Does the conceptual grid used in the agreements concluded by European countries have the same meaning as the one used by Asian countries, for instance in China? In the following article the authors try to answer the above-mentioned questions
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