Keywords
Expropriation
indirect expropriation
Bilateral Investment Treaty
Free Trade Agreement
Foreign Investment
NAFTA.
indirect expropriation
Bilateral Investment Treaty
Free Trade Agreement
Foreign Investment
NAFTA.
How to Cite
The Concept of “Indirect Expropriation”, its appearance in the international system and its effects in the regulatory activity of governments. (2011). Civilizar, 11(21), 77-97. https://doi.org/10.22518/16578953.39
Abstract
The protection of an alien’s property in a host country against direct expropriation has long existed in the international arena. Examples of direct expropriation include nationalization, physical seizure of assets or legislated transfer of assets to the state. However such physical takings are no longer common practice. Nowadays, expropriation comes mainly in the form of “indirect expropriation”: acts and steps taken by governments which interfere with the right to the property or diminish the value of the property. This paper explores the most relevant antecedents of the concept of indirect expropriation, its appearance in the international system, the inclusion in BITs and Investment Chapters of FTAs, and the effect that the concept is having on the regulatory activity of governments
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Guerrero, Emilio Constantino, Sangre y Patria, p.111. as quoted in De los Rios P, Livio Roberto, “Venezuela Bajo Tutela de Es- tados Unidos de América 1890 -1910”, Revista de Estudios Históricos y Documentales 2005, IV, (2), in http://www. acervohistoricozulia.com/descargas/acer- vo_rev1-vol4.pdf accessed on 6th July 2011.
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05-2011.
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Panama- United States of America, Bilateral In- vestment Treaty, 1982.
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Suda, Ryan, The Effect of Bilateral Investment Treaties on Human Rights Enforcement and Realization, New York University, School of Law, 2005, in: http://www. law.nyu.edu/global/workingpapers/2005/ ECM_DLV_015787 accessed 03 of May 2011.
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Zillman, Donald-Lucas Alastair and Pring George, Human Rights in Natural Resou- rce Development: Public Participation in the Sustainable Development of Mining and Energy Resources, Oxford Universi- ty Press, 2002.
Arbitral Tribunal Ethyl Corporation vs. Gover- nment of Canada. Award of Jurisdiction 24 of June 1998. Arbitrators Charles N. Brower, Marc Lalonde and Karl-Heinz Böckstiegel.
Arbitral Tribunal Técnicas Medioambientales Tecmed, S.A. vs. Mexico, Award 29 May 2003. Arbitrators Horacio Grigera Naón, José Carlos Fernández Rozas and Carlos Bernal.
Arbitral Tribunal Metalclad Corporation v Mexico, op cit Award 30 August 2000. Arbitrators Sir Elihu Lauterpacht, Benja- min R. Civiletti and José Luis Siqueiros.
Arbitral Tribunal Methanex Corporation v Uni- ted States of America, Award 3 August 2005. Arbitrators J. William F. Rowley,
W. Michael Reisman and V.V. Veeder.
Arbitral Tribunal Pope & Talbot Inc. v Canada, Award 2000-2002 . Arbitrators The Hon. Lord Dervaird – President The Hon. Ben- jamin J. Greenberg Mr. Murray J. Belman http://www.biicl.org/files/3922_2002_ pope_&_talbot_v_canada.pdf
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Boyle A. and Chinkin C.(2007). The Making of International Law, Oxford University Press: Oxford.
Chang Ha Joon, (2006).Kicking Away the Ladder: Development Strategy in Histo- rical Perspective, Anthem Press: London.
Christie, George C. (1962). “What Constitutes a Taking of Property Under International Law?” Duke Law Faculty Scholarship, 1962. Paper in http://scholarship.law. duke.edu/cgi/viewcontent.cgi?article=24 16&context=faculty_scholarship Acces- sed 27th of May 2011.
Costas. D. (2000).The end of human rights. Hart Publishing: London.
Cottier, T., Paulwelyn J. & Burgi, E. (2005). Human Rights and International Trade, Oxford Univesity Press: Oxford.
Denza, E. (2010). “ Bilateral investment treaties and EU rules on free transfer: comment on Commission v Austria, Commission v Sweden and Commission v Finland”, European Law Review, 2010 , p.p. 263-
274 in: http://login.westlaw.co.uk/maf/ wluk/app/document?&src=ri&docguid=IE2ABEAF046A511DF8B88FA13AE E581B7&hitguid=IE2ABEAF046A511DF8B88FA13AEE581B7&srguid=ia744d05f00000130c22f119d52358f33&spos=7&epos=7&td=59&refer=%2Fmaf%2Fwluk%2Fapp%2Fdocument%3Fsrc%3Drl%26context%3D2%26crumbaction%3Dappend%26resolvein%3Dtrue%26hitguid%3DIE2ABEAF046A511DF8B88FA13AEE581B7%26td%3D59%26docguid%3DIF3BE8060437F11DFA0ECE94BC67437EC%26epos%3D7%26suppsrguid%3Dia744d05f00000130c22f119d52358f33%26spos%3D7&crumb-action=append&context=3 Ac- cessed January 31st , 2011.
De Sousa Santos, B. & Rodriguez Garavito,
C. (2005). Law and Globalization From Below: Towards Cosmopolitan Legality, Cambridge University Press: Cambridge.
Dine, J. (2005). Companies, International Trade and Human Rights: Cambridge.
Dupuy, Piere-Marie-Francioni, Francesco and Ulrich, Petersman, Ernst, Human Rights in International Investment Law and Ar- bitration, Oxford University Press, 2009.
Epstein, Richard A, Takings: Private Property and the Power of Eminent Domain, Har- vard University Press, 1985.
Faundez Julio and Tan Celine, International Economic Law, Globalization and Deve- loping Countries, Edward Elgar Publis- hing, Cheltenham UK, 2010.
Gantz, David A, “The evolution of FTA inves- tment provisions: From NAFTA to the United States - Chile Free Trade Agree- ment”, American University International Law Review, 2003, 19 (4), in http://digital- commons.wcl.american.edu/cgi/viewcon- tent.cgi?article=1171&context=auilr&s ei-redir=1#search=% 22 EVOLUTION
%20FTA%20INVESTMENT%20 PROVISIONS%3A%20FROM%20 NAFTA%20UNITED%20STATES%20-%20CHILE%20FREE%20TRADE%20 AGREEMENT%22 Accessed May 24 2011.
Germany-Pakistan, Treaty for the Promotion and Protection of Investments between Pakistan and the Federal Republic of Ger- many, 25 November 1959.
Greider, William, “The Right and US Trade Law: Invalidating the 20th Century”, The Nation, 2001, in http://www.thenation.
com/article/right-and-us-trade-law-invalidating-20th-century Accessed April 5, 2011.
Guardiola-Rivera, Oscar, Law In Other Contexts: Stand Bravely Brothers! A Report from The Law Wars , Cambridge Univer- sity Press, 2008.
Guardiola-Rivera Oscar, What if Latin America Ruled The World: How The South Will Take the North Into the 22nd Century, Bloomsbury, London, 2010.
Guerrero, Emilio Constantino, Sangre y Patria, p.111. as quoted in De los Rios P, Livio Roberto, “Venezuela Bajo Tutela de Es- tados Unidos de América 1890 -1910”, Revista de Estudios Históricos y Documentales 2005, IV, (2), in http://www. acervohistoricozulia.com/descargas/acer- vo_rev1-vol4.pdf accessed on 6th July 2011.
Guzman Carrasco, Gonzalo, “Indirect Expropriation in Free Trade Agreements: The
U.S. Trade Act of 2002 and Beyond”, Revista Colombiana de Derecho Inter- nacional, 2004, (004), in http://www. javeriana.edu.co/Facultades/C_Juridicas/ pub_rev/international_law/revista_4/8. pdf Accessed 2nd June 2011.
Hoekman Bernard and Kostecki Michel, The Political Economy of the World Trading System, Oxford University Press, 1997.
Korten D., When Corporations Rule the World, Kumarian press, 1995.
Krasner Stephen D, Defending The National Interest: Raw Materials and U.S. Foreign Policy, Princeton University Press, Prin- ceton, 1978.
Locke, John Two Treatises of Government (P. Laslett (ed.), Cambridge University Press, 1988.
Mann, Howard, International Investment Agreements, Business and Human Rights: Key Issues and Opportunities, Interna- tional Institute for Sustainable Develop- ment, 2008.
McBeth, Adam, International Economic Actors and Human Rights, Routledge Taylor&Francisc Group, Oxon, 2010.
New York University. http://www.law.nyu.edu/ news/ECM_PRO_059743 Accessed 24-
05-2011.
Organisation for Economic Co-Operation and Development, Draft Convention on the Protection of Foreign Property, 1967.
Panama- United States of America, Bilateral In- vestment Treaty, 1982.
Permanent Court of International Justice, Eighth (Ordinary) Session, Judgement No. 6, 1925, judges: Lord Finlay, Nyholm, de Bustamante, Altamira, Oda, Anzilotti, Pessôa,
Permanent Court of International Justice, Tenth (Extraordinary) Session, Judgement No. 7, 1926, judges: , Nyholm, Altamira, An- zilotti.
Peterson, Luke Erik, Human Rights and Bilateral Investment Treaties: Mapping the role of human rights law within investor- state arbitration, International Centre for Human Rights and Democracy Develop- ment, Montreal, 2009, in http://www.dd-rd.ca/site/_PDF/publications/globaliza- tion/HIRA-volume3-ENG.pdf Accessed 28th May 2011.
Peterson Luke Erik, Gray Kevin R, International Human Rights in Bilateral Investment Treaties and in Investment Treaty Arbi- tration, International Institute for Sus- tainable Development (IISD), Canada, 2003, in http://www.iisd.org/pdf/2003/investment_int_human_rights_bits.pdf, Accessed January 22, 2011.
Peterson, Luke Eric and Garland, Ross Ross, Bilateral Investment Treaties and Land Reform in Southern Africa, Rights & Democracy, June 2010.
Pucher Holmer, Magdalena, Regulatory expropriation under international investment law – A case-law analysis, (Thesis), Fa- culty of Law, University of Lund, 2006. Inhttp://lup.lub.lu.se/luur/download?fu nc=downloadFile&recordOId=1561357 &fileOId=1565610 accessed 05 of July 2011.
SalacuseWJeswald,TheGlobalNegotiator:Making, Managing, and Mending Deals Around the World in The Twenty First Century, PAL- GRAVE McMILLAN, New York, 2003.
Sands Philippe, Lawless World:Making and Breaking Global Rules, Penguin Books, London, 2006.
Sohn, Louis B and Baxter, R. R., “The Ameri- can Journal of International Law” Vol. 55, No. 3 (Jul., 1961), pp. 545-547 (article consists of 3 pages) in http://www.jstor. org.ezproxy.lib.bbk.ac.uk/stable/219587 8?seq=1&Search=yes&searchText=Introduction&searchText=Injuries&searchText=Responsibility&searchText=I.&searchText=Interests&searchText=Aliens&searchText=Economic&searchText=States&list=hide&searchUri=%2Faction%2FdoBasicSearch%3FQuery%3DResponsibility%2Bof%2BStates%2Bfor%2BInjuries%2Bto%2Bthe%2BEconomic%2BInterests%2Bof%2BAliens%253A%2BI.%2BIntroduction%26gw%3Djtx%26acc%3Don%26prq%3Dau%253A%2528Louis%2BB.%2BSohn%2529%26Search%3DSearch%26hp%3D25%26wc%3Don&prevSearch=&item=1&ttl=823&returnArticleService=showFullText&resultsServiceName=null Accessed 29 of July 2011.
Sornarajah M. The International Law on Foreign Investments, Cambridge Press, 2010.
Subedi Surya P. International Investment Law: Reconciling Policy and Principle, HART, Portland USA, 2008.
Suda, Ryan, The Effect of Bilateral Investment Treaties on Human Rights Enforcement and Realization, New York University, School of Law, 2005, in: http://www. law.nyu.edu/global/workingpapers/2005/ ECM_DLV_015787 accessed 03 of May 2011.
Trebilcock Michael J, The Regulation of International Trade, Routledge, Oxon UK, 2005.
United Nation, UN Charter 1945.
United States Department of State http://www. state.gov/s/l/c5818.htm accessed 07 of July 2011
Van Den Bossche Peter, The Law and Policy of The World Trade Organization, Cambrid- ge University Press, Cambridge, 2008.
Yannaca-Small, Catherine, Indirect Expropria- tion and the Right to Regulate in Interna- tional Investment Law, Organisation for Economic Co-operation and Develop- ment, 2004. p.7 in: http://www.oecd.org/ dataoecd/22/54/33776546.pdf Accessed March 23 2011.
Zillman, Donald-Lucas Alastair and Pring George, Human Rights in Natural Resou- rce Development: Public Participation in the Sustainable Development of Mining and Energy Resources, Oxford Universi- ty Press, 2002.
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