Investment Protection (ENG)

ID: EN-LAW-25-13-420

Module annotation

This course provides a comprehensive introduction to the legal and practical dynamics of investment protection in both domestic and international contexts. In today’s globalized economy, investments play a pivotal role in economic development, international relations, environmental governance, and trade. As a result, states increasingly regulate investment activities through national laws as well as bilateral and multilateral treaties.

The course explores the legal frameworks that govern cross-border and international investments, including their operation in practice. It examines, among others, key challenges such as expropriation, arbitrary taxation, and regulatory changes that may affect foreign investments.

In addition, it critically assesses the legitimacy and efficacy of investment arbitration systems, which have faced growing scrutiny for allegedly favoring investors over states and failing to address broader public interest concerns. Special attention is given to the interaction between investment law and other legal regimes, including human rights, environmental protection, and sustainable development.

The course adopts both theoretical and practical approaches, drawing on legal instruments, jurisprudence, and real-world case studies. Students will engage with the material through lectures, simulations, legal analysis, and group discussions.

Module structure

• Module 1: Introduction to Investment Law. Forms of investments in international market. Legal and economic concept of foreign investments. Key risks associated with foreign investments (political, regulatory, etc). Promotion and Protection of foreign investments.

• Module 2: Regulatory Frameworks and Instruments of Investment Protection. International regional and national legal frameworks and their interactions. BITs and MITs, Model Laws and Soft law instruments. Washington Convention and ICSID system. Seoul Convention and MIGA.
• Module 3: Key Legal Concepts and Substantive Standards of Protection. Definition of terms (investment, investor, capital, etc.) under various instruments. Substantive standards of protection. Investment agreements and their clauses (due diligence, IP, confidentiality).

• Module 4: Dispute Settlement and Contemporary Challenges. Dispute resolution mechanisms (national courts, Chambers of Commerce, international tribunals, arbitration). Jurisdiction, admissibility and enforcement. Emerging challenges and intersection with other international obligations: human rights, EU law, environmental law, legitimacy and effectiveness of current regime.

Literature

• Dolzer, R. & Schreuer, C., Principles of International Investment Law (latest edition)
• Supplementary Materials: Peer-reviewed journal articles (distributed via course platform)

Useful Sources:

• ICSID, UNCTAD Investment Policy Hub, http://icsid.worldbank.org/ICSID/Index.jsp
• UNCTAD publications on core clauses, regular “Issue Notes” on investment disputes and policy issues, http://unctad.org/en/Pages/DIAE/International%20Investment%20Agreements%20%28IIA%29/IIAPublications.aspx
• UNCTAD database on investment disputes http://unctad.org/iia-dbcases/cases.aspx
• Awards and other documents arising from NAFTA arbitrations (U.S. Government) http://www.naftaclaims.com/
• List of cases and publicly available awards arising under the Energy Charter Treaty http://www.encharter.org/index.php?id=213
• News and comment on investment arbitration (International Institute for Sustainable Development - IISD) http://www.investmenttreatynews.org/
• Database on public law implications of international investment arbitration http://investmentpolicyhub.unctad.org/  
• Discussion forum for investment policy related debates and developments http://www.vcc.columbia.edu
• investmentclaims.com
• http://ita.law.uvic.ca/