Chapter 1 Introduction 1
1.1 The Core Principles of the BITS 2
1.2 The Content of the BITS 4
1.3 The Plan of this Book 11
1.4 Citations to BITS， Awards， and Literature 14
1.5 Apologies， Alibis， and Acknowledgements 15
Chapter 2 History 19
2.1 The Colonial Era： 1820-1944 19
2.1.1 The Emergence of a Global Economy： 1820-1914 20
2.1.2 The Global Economy Collapses： 1914-1944 31
2.2 The Cold War Era： 1944-1989 38
2.3 The Global Era： 1990-Present 59
Chapter 3 Policy 75
3.1 Economic Liberalism 75
3.1.1 Microeconomic Theory 80
3.1.2 MacroeconomicTheory 83
3.2 The Critique of Economic Liberalism 87
3.3 Development Economics 90
3.4 The Empirical Evidence 93
3.4.1 Foreign Investment and Growth 93
3.4.1.1 Private Investment 93
3.4.1.2 Public Investment 96
3.4.2 Foreign Investment and Inequality 97
3.4.3 Environmental and Labor Concerns 103
3.5 The Role of BITS 108
3.5.1 Promoting a Liberal Investment Regime 108
3.5.2 Promoting the Rule of Law 113
3.6 The Effectiveness of BITs 115
Chapter 4 Scope 121
4.1 Introduction 121
4.2 The Definition of Investment 122
4.2.1 Structure and Policy 122
4.2.2 Origins 132
4.2.3 Arbitral Practice 133
4.2.3.1 The Definition of Investment Under the ICSID Convention 133
4.2.3.2 The Definition of Investment Under the BITs 137
4.2.3.3 Identifying the Location of the Investment 148
4.2.3.4 Relevance of the Source of Financing 150
4.2.3.5 Consistency of the Investment with Local Law 152
4.3 The Definition of Investor 157
4.3.1 Structure and Policy 157
4.3.2 Origins 164
4.3.3 Arbitral Practice 168
4.3.3.1 Ascribing Nationality to a Company 168
4.3.3.2 The Nationality of an Intermediary Corporation 172
4.3.3.3 Ascribing Nationality to an Individual 172
4.3.3.4 Ownership or Control of an Investment 174
4.4 The Temporal Application of a BIT 175
4.5 Exceptions 178
4.5.1 The Essential Security Interests Exception 179
4.5.2 The Taxation Exception 186
Chapter 5 Reasonableness 189
5.1 Introduction 189
5.2 Fair and Equitable Treatment 190
5.2.1 Structure and Policy 190
5.2.2 Origins 195
5.2.3 Arbitral Practice 202
5.3 Unreasonable or Discriminatoty Measures 212
5.3.1 Structure and Policy 212
5.3.2 Origins 215
5.3.3 Arbitral Practice 219
5.4 The International Minimum Standard 226
Chapter 6 Security 233
6.1 Introduction 233
6.2 Fair and Equitable Treatment 234
6.3 Full Protection and Security 243
6.3.1 Structure and Policy 243
6.3.2 Origins 244
6.3.3 Arbitral Practice 248
6.4 Observance of Obligations 256
6.4.1 Structure and Policy 256
6.4.2 Origins 260
6.4.3 Arbitral Practice 263
6.5 Expropriation 271
6.5.1 Structure and Policy 271
6.5.2 Origins 282
6.5.3 Arbitral Practice 289
6.5.3.1 Expropriation of Property Rights 289
6.5.3.2 Expropriation of Contract Rights 303
6.5.3.3 Expropriation by the Judicial Branch 306
6.5.3.4 Grounds for Wrongfulness 307
6.6 War and Civil Disturbance 309
6.6.1 Structure and Policy 309
6.6.2 Origins 311
6.6.3 Arbitral Practice 315
6.7 Currency Transfers 316
6.7.1 Structure and Policy 316
6.7.2 Origins 324
6.7.3 Arbitral Practice 332
6.8 Preservation of Rights 333
Chapter 7 Nondiscrimination 337
7.1 Introduction 337
7.2 Most Favored Nation and National Treatment 339
7.2.1 Structure and Policy 339
7.2.2 MFN Treatment： Origins 352
7.2.3 MFN Treatment： Arbitral Practice 357
7.2.4 National Treatment： Origins 373
7.2.5 National Treatment： Arbitral Practice 376
7.3 War and Civil Disturbance 386
7.4 Unreasonable or Discriminatory.Measures 387
7.5 Fair and Equitable Treatment 392
7.6 The International Minimum Standard 394
Chapter 8 Transparency 397
8.1 Introduction 397
8.2 Publication 399
8.3 Information Exchange 400
8.4 Participation in Decision Making 401
8.5 Fair and Equitable Treatment 402
Chapter 9 Access 405
9.1 Introduction 405
9.2 The Economics of an Open Capital Account 408
9.3 Establishment 413
9.3.1 Structure and Policy 413
9.3.2 Origins 415
9.3.3 Arbitral Practice 418
9.4 Currency Transfers 419
9.5 Performance Requirements 419
9.6 Entry and Sojourn 422
9.7 Employment 424
Chapter 10 Due Process 427
10.1 Introduction 427
10.2 Investor-State Dispute Resolution 433
10.2.1 Structure and Policy 433
10.2.1.1 Consent to Arbitration 433
10.2.1.2 Arbitral Mechanisms 434
10.2.1.3 Prerequisites to Arbitration 439
10.2.1.4 Investment-State Arbitration Clauses 443
10.2.1.5 Choice of Law Clauses 444
10.2.1.6 Collateral Sources of Compensation 445
10.2.1.7 Awards 445
10.2.1.8 Innovations in Investor-State Arbitration 447
10.2.1.8.1 Party Participation in the Arbitration 449
10.2.1.8.2 Transparency 451
10.2.1.8.3 Public Participation 453
10.2.1.8.4 Expedited Consideration of Claims 454
10.2.1.8.5 Consolidation of Claims 454
10.2.1.8.6 Appellate Mechanisms 457
10.2.2 Origins 457
10.2.3 Arbitral Practice 465
10.2.3.1 The Tribunal’s Jurisdiction 465
10.2.3.1.1 Existence of an Investment 466
10.2.3.1.2 Existence of an Investor or Investment With Standing 466
10.2.3.1.3 Consent to Arbitration 477
10.2.3.1.4 Existence of an Investment Dispute 478
10.2.3.1.5 Hypotheticality and Timing of the Dispute 480
10.2.3.2 Submission of the Dispute to Local Remedies 482
10.2.3.2.1 The Exhaustion of Local Remedies Requirement 482
10.2.3.2.2 Previously Agreed Procedures 484
10.2.3.2.3 Voluntary Submission to Local Remedies 485
10.2.3.2.4 Choice of Forum Clauses Designating Local Remedies 488
10.2.3.3 Multiple Proceedings 491
10.2.3.4 Other Procedural Conditions for Submission of a Claim 492
10.2.3.4.1 Prior Consultations or Negotiations 492
10.2.3.4.2 The Waiting Period 494
10.2.3.4.3 Sufficiency of Notice 497
10.2.3.5 Conduct of the Arbitration 498
10.3 State-State Dispute Resolution 499
10.3.1 Structure and Policy 499
10.3.2 Origins 504
10.3.3 Arbitral Practice 507
10.4 Denial of Justice 508
10.4.1 Treaty Texts 508
10.4.2 Arbitral Practice 509
Table of Cases 517
Table of Treaties and Other International Instruments 525
Index 553