I History, Sources, and Nature of International Investment Law

Abstract

This chapter discusses the history, sources, and nature of international investment law. Foreign investment law consists of general international law, of standards more specific to international economic law, and of distinct rules peculiar to the protection of investment. In addition, the law of the host State plays an important role. Depending upon the circumstances of an individual case, the interplay between relevant domestic rules of the host State and applicable rules of international law may become central to the analysis of a case. The chapter then surveys the most important sources of international investment law, including the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention); bilateral investment treaties (BITs); sectoral and regional treaties; customary international law; general principles of law; unilateral statements; and case law. It also highlights certain aspects that are relevant for the nature of current international investment law, including trade law; the balancing of duties and benefits in investment treaties; and good governance.