Interpretation of International Investment Treaties
This book offers a systematic study of the interpretation of investment-related treaties - primarily bilateral investment treaties, the Energy Charter Treaty, Chapter XI NAFTA as well as relevant parts of Free Trade Agreements.
The importance of interpretation in international law cannot be overstated and foreign investment law is no exception. Indeed, most treaty claims adjudicated before investment arbitral tribunals have raised and continue to raise crucial and often complex issues of interpretation.
The interpretation of investment treaties is governed by the relevant rules of the Vienna Convention on the Law of Treaties (VCLT), which reflect customary international law. The disputes related to these treaties, however, are very peculiar as they oppose a multinational company (or a natural person) to a sovereign government.
The parties to the treaty and those to the dispute, therefore, do not coincide. This calls for a balanced interpretation that takes into account both the prerogatives of the sovereign State and the legally protected interests of the foreign investor.