The Legal Monster that lets Companies Sue Countries
The article traces the history of European bilateral investment treaties (BITs) and highlights the recent concerns surrounding the rise of investor-state arbitration.
Today, an increasing number of BITs are being concluded between a developed and a developing country with a view to protect the investments of the developed country by guarantees of non-discrimination in the developing country. Moreover, these BITs grant investors the right to bring claims before an international arbitral tribunal. Thus, the treaty rights are often more favourable to the investor than the rights found under national laws of the host state. The article is a commentary on the dangerous rise of investor-state investment arbitration as both developed and developing country governments face treaty claims from foreign investors bypassing national and European Union law.
You might also be interested in
Could CSDDD Signal A Tipping Point For Corporate Accountability?
This week has seen the EU agree new rules on supply chain due diligence, one of a set of laws passed including action on toxic air, packaging and packaging waste. What the Corporate Sustainability Due Diligence Directive establishes is legal liability for corporates on environmental and human rights issues in the European courts—and that could change the framework of corporate accountability.
Why does the EU want to quit the Energy Charter Treaty?
European lawmakers have backed plans for the EU to exit a treaty that lets fossil fuel firms sue when climate policies hit profits.
EU Parliament agrees to withdraw from Energy Charter Treaty
The bloc's long-mooted withdrawal could halve the number of signatories to a treaty criticized for appearing to protect the interests of fossil fuel investors.
EU votes to leave energy treaty as green rules pushed through
Final plenary session of parliament sees climate legislation passed despite political and industry opposition.