The Effects of Armed Conflicts on Investment Treaties

Abstract

This chapter explores whether the outbreak of armed conflict could result in the termination or suspension of investment treaties. It critically inspects the International Law Commission’s codification project on the effects of armed conflicts on treaties, and argues that certain types of conflicts could result in the suspension of certain investment treaty provisions when warranted by security concerns. In addition, it considers the doctrines of supervening impossibility to perform and fundamental change of circumstances, and argues that the former, in particular, could justify the suspension of an investment treaty provision. However, such disruptions to treaty operation are limited to the most severe armed conflicts of the highest magnitude.