Conclusion

Abstract

This section highlights the present study’s key findings. First, from the very beginning, protections afforded to foreign investments by modern investment treaties have been exceptionally broad, including guarantees vis-à-vis the host State’s (a) breach of investment contracts and regulatory change; (b) substantial deprivation of the value of the foreign investment; and (c) unreasonable conduct. Second, while a growing number of investment tribunals as well as new investment treaties have started to rein in such broad protections, the evolution of key investment treaty provisions has been (and in many ways still is) marred by inconsistency and uncertainty. Lastly, while there appears to be a growing preference in arbitral practice (as well as treaty practice) for reasonableness-based guarantees, there is still no clarity with regard to the specific reasonableness test that should be employed in order to review the lawfulness of the host State conduct under an investment treaty.