Host State’s Defences against Conflict-Related Investment Claims

This chapter explores the defence tools that a host state can use against conflict-related investment claims. The first part analyses security exceptions which have been introduced to investment protection law after the Second World War. While it is widely believed that such exceptions provide for the most persuasive safeguard of the state’s security interests, it is argued that their effectiveness will depend on the wording of the provision, determining their scope, the degree of autonomy given to a state in responding to a security threat, and their relationship with other treaty provisions. The chapter addresses these aspects. The second part focuses on the defences in the general law of state responsibility (necessity, force majeure, and countermeasures), explaining why their potential as a defence is limited.