Los tratados bilaterales de inversión y el arbitraje internacional: ¿en dirección al mejor funcionamiento de las instituciones domésticas? (Tema Central)

Los tratados bilaterales sobre promoción y protección recíproca de inversiones (TBIs) tienen dos grandes objetivos: uno concreto e inmediato, el otro vago y mediato. Primero, estos acuerdos brindan garantías al inversor extranjero respecto del tratamiento que el Estado receptor otorgará a sus proyectos. Segundo, la firma de estos tratados pretende atraer más inversión extranjera a los países signatarios. El esquema de los TBIs, por lo tanto, se sustenta en la creencia de que los flujos de capitales extranjeros son afectados por la incapacidad institucional de los potenciales estados receptores. Estos tratados servirían para remediar esta falencia. Desde una perspectiva de política económica, no obstante, los beneficios para los países receptores son motivo de grandes discusiones. El presente trabajo busca ampliar este debate, analizando en qué medida los TBIs ayudan a los estados receptores a desarrollar las instituciones adecuadas para sus democracias y sus economías de mercado.

La competencia de la Unión Europea en la inversión extranjera directa (Tema Central)

El presente trabajo intenta analizar brevemente los distintos aspectos relativos a la inclusión de la inversión extranjera directa en la política comercial común de la Unión Europea, reformada por el Tratado de Lisboa. Inicialmente se hará referencia a la práctica de la UE en el área de inversiones previas al Tratado de Lisboa, acto seguido, se expondrán las interpretaciones sugeridas al concepto de “inversión extranjera directa” en la política comercial común de la Unión Europea, así como también las distintas posturas sobre el alcance de esta política con relación a este concepto, tras la vigencia del Tratado de Lisboa. Finalmente serán descritos los posibles efectos de dicha competencia de la Unión para los tratados bilaterales de inversión celebrados entre sus países miembros, y de estos con terceros países.

Análisis del dictamen No. 023-10-DTI-CC de la Corte Constitucional para el período de transición referente al “Tratado entre la República del Ecuador y la República Federal de Alemania sobre fomento y recíproca protección de inversiones de capital”: (Caso No. 0006-10-TI) [Jurisprudencia]

El presente trabajo analiza de manera crítica el pronunciamiento de la Corte Constitucional para el Período de Transición respecto al control constitucional de las denuncias de tratados bilaterales de inversiones de capital, tomando como caso de estudio el instrumento internacional suscrito entre Ecuador y Alemania, en el cual bajo una corriente constitucionalista, la Corte somete al crisol de la contradicción el contenido del Tratado Internacional con la normativa constitucional vigente. En aquel sentido, analizaremos cómo, a través de este polémico dictamen, se inicia una línea jurisprudencial en la que se configuran temas controversiales como el denominado control automático de constitucionalidad, y, el debate respecto a la soberanía estatal en cuanto al no sometimiento del Ecuador a arbitrajes comerciales internacionales en asuntos de índole comercial.

Analysis of the economic and financial relations between Latin American and the Caribbean and the BRICS group

This document has been prepared in compliance with Activity III.1.2 of the Work Programme of SELA for the year 2015, entitled “Analysis of the economic and financial relations between Latin America and the Caribbean and the BRICS countries”. The document comprises an introduction, four chapters and a final section with the conclusions and recommendations stemming from the study. Chapter I describes the economic performance of the BRICS countries, their economic relations with Latin America and the Caribbean and the functioning of the development banks of the member countries. Chapter II assesses the financial architecture of Latin America and the Caribbean and explores the needs for financing in the region. Chapter III deals with the regulatory frameworks governing public and private investments in Latin America and the Caribbean and the Bilateral Investment Treaties with the BRICS countries. Finally, Chapter IV describes the main features of the New Development Bank (NDB) and the Contingent Reserve Agreement of the BRICS

God, the WTO – and hunger

Considering that endemic hunger is a consequence of poverty, and that food is arguably the most basic of all human needs, this book chapter shows one of the more prominent examples of rules and policy fragmentation but also one of the most blatant global governance problems. The three monotheistic religions Judaism, Christians and Islam are surprisingly unanimous about God’s prescriptions on hunger or, put theologically, on what can be said, or should be said, about the interpretations and traditions which, taken together, form the respective and differentiated traditions, identities and views of these beliefs on how to deal with poverty and hunger. A clear social ethos, in the form of global needs satisfaction, runs through both Jewish and Christian texts, and the Qur’an (Zakat). It confirms the value inversion between the world of the mighty and that of the hungry. The message is clear: because salvation is available only through the grace of God, those who have must give to those who have not. This is not charity: it is an inversion of values which can not be addressed by spending 0.7% of your GDP on ODA, and the implication of this sense of redistributive justice is that social offenders will be subject to the Last Judgement. Interestingly, these religious scriptures found their way directly into the human rights treaties adopted by the United Nations and ratified by the parliaments, as a legal base for the duty to protect, to respect and to remedy. On the other side the contradiction with international trade law is all the more flagrant, and it has a direct bearing on poverty: systematic surplus food dumping is still allowed under WTO rules, despite the declared objective ‘to establish a fair and market-oriented agricultural trading system’. A way forward would be a kind of ‘bottom up’ approach by focusing on extreme cases of food insecurity caused by food dumping, or by export restrictions where a direct effect of food insecurity in other countries can be established. Also, international financing institutions need to review their policies and lending priorities. The same goes for the bilateral investment treaties and a possible ‘public interest’ clause, at least in respect of agricultural land acquisitions in vulnerable countries. The bottom line is this: WTO rules cannot entail a right to violate other, equally binding treaty obligations when its membership as a whole claims to contribute to the Millennium Development Goals and pledges to eradicate extreme poverty and hunger.

Location choice in low-income countries : evidence from Japanese investments in East Asia

Unlike most existing studies, this paper examines the location choices of MNEs in developing countries. Specifically, we investigate the location choices of Japanese MNEs among East Asian developing countries by estimating a four-stage nested logit model at the province level. Noteworthy results of location elements are as follows. As is consistent with the mechanics of cheap labor-seeking FDI, Japanese MNEs are more likely to invest in locations with low income and low tariff rates on products from Japan. Also, accessibility to other locations and/or ports matters in attracting Japanese MNEs because it is crucial in importing materials and exporting their products. In addition, WTO membership and bilateral investment treaties are important because these contribute to the settlement of trade and investment disputes, which is more likely to be necessary in developing countries.

EU Enlargement: external economic implications. Bruges European Economic Policy (BEEP) Briefing 4/2003

Unlike some previous EU enlargements (e.g. with the UK and with Spain/Portugal) the present EU enlargement to Central Europe has not prompted much, let alone a fierce, debate about the external dimension. This BEEP briefing discusses the main economic aspects of the external dimension, in particular whether there is a threat of (how much) trade diversion. Attention is paid to the three main topics of interest for third countries: industrial trade effects, impact on FDI and agricultural trade effects. Agriculture is arguably the most sensitive of the three, given the very high CAP border protection, and although large-scale trade diversion may eventually occur under certain scenarios (such as an unreformed CAP), these fears are greatly exaggerated in the short to medium term (5-7 years): the time frame considered is therefore all-important. This conclusion becomes less surprising if one takes a closer look at the current sorry state of agriculture in the CEECs. Separate sections treat the somewhat sensitive subject of U.S.-CEEC Bilateral Investment Treaties, as well as the longterm development perspective, which addresses the prospects for catch-up growth by the accession countries. In the end, non-European stakeholders in the accession process will greatly benefit from sustained catch-up growth by the CEECs, which are locking-in deep reforms due to EU accession.

Dispute Settlement Alternatives in Future EU BITS. IES WORKING PAPER 1/2012

Following the inclusion of the Common Commercial Policy in the exclusive competences of the European Union, a handful of policy adjustments have occurred. Among these adjustments, investment protection has been a remarkable one - given its new, exclusive framework and an already established, state-level practice. As the new policy stands, Bilateral Investment Treaties, which had been negotiated and executed by the EU Member States in the pre-Lisbon period, can now only be negotiated and executed by the EU. These prospective ‘EU BITs’, inter alia, aim for an even stronger mechanism for the protection of investors both in the EU and in third states. A strong protection mechanism inevitably calls for a strong Dispute Settlement Mechanism, and the establishment of a DSM may prove to be challenging. The EU currently faces several questions on its path to a tangible and reliable ‘EU BIT’, and arguably the most outstanding one is the question of the DSMs to be incorporated in these new agreements. What are the alternatives of a DSM for these new BITs? Which alternatives are currently utilizable and which ones are not? What are the current problems that the EU face, and how can those problems be tackled? Is the International Centre for Settlement of Investment Disputes an alternative, and if not, why? Following a thorough overview, this paper aims to analyse the DSM alternatives for the EU to be used in the new EU BITs and ultimately provide a solid DSM proposal.

Member State BITS after the Treaty of Lisbon: solid foundation or first victims of EU investment policy? Research Paper in Law, 02/2012

[Introduction.] This paper discusses the uncertain future of Member State BITs with third countries in the light of the developing EU investment policy. The question will be examined on the basis of the proposed Regulation establishing transitional arrangements for bilateral investment agreements between Member States and third countries presented by the Commission on 7 July 20101 and the European Parliament’s Position adopted at first reading on 10 May 2011.2 The proposed Regulation and the Commission Communication of the same day are meant to be the “first steps in the development of an EU international investment policy”.3 The first chapters present the legal framework relevant for this question and its evolution to better understand the particular challenges of this transition process. The second chapter examines the relationship of EU law and investment law, with a brief introduction of the notion of investment law and the scope of the EU’s new investment competence. The third chapter outlines the legal framework for the continuation and termination of treaties under international and EU law. The fourth chapter concerns BITs, first covering the particular nature of BITs and then the CJEU’s judgments in the BIT Cases of 2009. The fifth chapter consists of a step by step analysis of the different provisions of the proposed Regulation.

Evaluación de la inversión bilateral colombo-chino

El presente trabajo tiene la intención de investigar la relación comercial entre China y Colombia teniendo en cuenta su evolución histórica, su comportamiento actual y su desarrollo potencial y determinar los potenciales sectores de inversión bilateral. Conforme a lo anterior se reunió información relevante de como se ha comportado históricamente la inversión comercial y la inversión extranjera directa de cada país, como es el estatus actual de mercado de los países en consideración, los incentivos o proyectos que fomentan el comercio exterior y el IED están desarrollando los países, que sectores tienen mayor potencial para invertir en cada país, las barreras que existen actualmente en aumentar la IED bilateral y finalmente determinar las estrategias y oportunidades que existen para nuevos inversionistas Colombianos interesados en invertir en China y viceversa.

The Chilean Experience in South-South Trade and Investment Agreements

This paper analyzes the main features of Chilean trade and investment treaties, examining if there is a Chilean pattern in the regulation of trade and investment flows or if it is influenced by agreements signed by Chile with developed countries. The article also examines if there are differences between the treaties signed by Chile and other “Southern” developing countries and those negotiated with “Northern” developed economies, and if sustainable development concerns are part of the negotiations of trade and investment agreements by Chile.

Dynamics of investment negotiations between China and Japan : the China-Japan-Korea trilateral investment treaty and beyond

The investment agreement relationship between China and Japan is complex. The many intersecting and overlapping agreements can rightly be described as a "noodle bowl of agreements." The 1989 bilateral investment treaty (BIT) between China and Japan still stands. Japan can also free-ride on the negotiation outcome of China's BITs and free trade agreements (FTAs) with other countries by using the most-favored-nation (MFN) provision in the 1989 China-Japan BIT, which does not contain regional economic integration organization (REIO) exception rules. However, because the China-Japan BIT does not have investor-state dispute settlement (ISDS), it may face implementation problems. The China-Japan-Korea trilateral investment treaty (CJK TIT), in force since 2014, made improvements upon the 1989 BIT, but Japan is not entirely satisfied with the outcome. For Japan, pre-establishment national treatment (NT) and prohibition of various types of performance requirements are the most important negotiation items, but the CJK TIT insufficiently addressed those problems. Moreover, because the CJK TIT has MFN provisions with an REIO exception rule, better access to investment markets brought about by future FTAs such as the China-Korea FTA and the EU-China FTA cannot be imported into CJK TIT. Hence, in the long run, Japan needs to pursue an FTA investment chapter with China that covers both MFN and ISDS.

L'arbitrage impliquant les personnes publiques : tendances et perspectives

Cette étude aborde la problématique de la participation des personnes morales de droit public à l’arbitrage à l’occasion des litiges relatifs aux relations qu’elles entretiennent avec les personnes privées étrangères. Par opportunisme économique, un certain nombre de pays développés et en développement se montrent tout à fait favorables à ce que l’État se soumette au contentieux arbitral. Dans d’autres pays, tels qu’en Amérique latine et dans le monde arabe, il se manifeste des tendances nettement hostiles gravitant entre l’interdiction totale et une adhésion conditionnelle de l’État à l’arbitrage. Deux écoles s’affrontent, celle des privatistes qui considèrent l’arbitre international comme le juge naturel du milieu des affaires, face à celle des étatistes qui postulent que les juridictions étatiques demeurent les seules habiles à connaitre souverainement des litiges opposants les personnes publiques à leur interlocuteur privé. Les raisons qui sous-tendent l’assouplissement de certains gouvernements vers un élan libéral de l’arbitrage en droit public, résultent du phénomène globalisant de l’économie qui tend à réduire à néant les règles internes des États dans le cadre du nouvel ordre économique mondial. Par contre, les conséquences sociales, financières et juridiques des sentences arbitrales portent certains gouvernements à adopter une position réfractaire à l’arbitrage mettant en cause les entités publiques. Ils brandissent le droit à l’autodétermination des peuples pour éviter le bradage de leurs ressources au détriment des droits économiques, sociaux et culturels de leurs populations, et ce, en dépit du fait que l’investissement direct étranger joue un rôle considérable dans le développement des pays en émergence. Notre défi ultime dans ce travail est d’explorer les diverses avenues permettant d’atteindre un juste équilibre entre les intérêts publics et la protection des investissements privés. Ceci exige un changement de paradigme qui prendra en compte les dimensions plurielles que constitue le contentieux investisseurs-États.

The mutual agreement procedure and arbitration of double taxation disputes

It is in the interest of most states to eliminate double taxation (i.e. the payment of the same tax in two jurisdictions) of transnational commercial enterprises. Because such disputes involve, on the one hand, the state imposition of taxes, a right universally asserted by all states, and private entities on the other, taxation disputes between such parties are not, on their face, easily susceptible to arbitration. This article analyzes two dispute settlement procedures-the OECD First Model Tax Convention and a similar EU Convention-with the exclusive focus on disputes relating to the imposition of double taxation. It will look at the ways in which state roles may vary under these procedures from assisting in the negotiation process to taking a part similar to, but with important differences from, diplomatic protection on behalf of an affected enterprise. The article will examine the situations under which the settlement procedure is required and/or available, how the procedures are triggered, the obligations and parts played by the parties, the means by which the disputes are resolved (from negotiations to tribunals) and the limitations of the procedures. Are they “taxpayer friendly”? As a result the reader may draw comparisons between the two procedures. Finally, the article will look at the proposed OECD Arbitration Clause which is intended to be incorporated into Article 25 of the OECD Model Tax Convention as well as how these mechanisms relate and/or conflict with bilateral tax treaties and the GATS.

The Principle of Proportionality in International Law

Whilst the principle of proportionality indisputably plays a crucial role in the protection of fundamental rights, it is still unclear to what extent it applies to other fields in international law. The paper therefore explores the role it plays in selected fields of public international law, beyond human rights. The examination begins in the classical domain of reprisals and in maritime boundary delimitation and continues to analyse the role played in the law of multilateral trade regulation of the World Trade Organization and in bilateral investment protection. In an attempt to explain differences in recourse to proportionality in the various fields, we develop in our conclusions a distinction between horizontal and vertical constellations of legal protection.