Investment Arbitration and State Sovereignty: Tensions and Challenges
Keywords:
investment arbitration, state sovereignity, legitimate expectations, investment protection standards, regulatory powerAbstract
This work analyzes how investment arbitration affects state sovereignty by allowing foreign investors to challenge national regulations. It highlights that this system has generated uncertainty and a lack of legitimacy due to unclear rules and the partiality of some arbitrators. Additionally, it criticizes the doctrine of legitimate expectations for restricting states' regulatory capacity. As a solution, it proposes greater transparency in the system and the creation of a Multilateral Investment Court, along with strengthening the rule of law to attract investments without compromising state autonomy.
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