Importance Of International Investment Law

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International investment law as an instrument for sustainable development
The relation between international investment law and sustainable development is ?two sided?.[footnoteRef:2] This statement is also supported by Newcombe, he states sustainable development is indeed needed in the future, thus, foreign direct investment (FDI) could be the main instrument to ensure any development agenda.[footnoteRef:3] Furthermore, Foreign direct investment also contributes toward financing sustained economic growth over the long term. In other words, the incorporation of sustainable development in international economic policies, negotiations, and agreements could ensure the growth of development more directly to the sustainable way. However, international
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[12: The first BIT to have been signed is the Treaty for the Promotion and Protection of Investments, with protocol and exchange of notes between the Federal Republic of Germany and Pakistan, signed on 25 November 1959, entry into force on 28 April 1962, 457 UNTS 23; UNCTAD, ?Bilateral Investment Treaties 1959-1999?, UNCTAD/ITE/IIA/2, 2000, p. 1, Online. Available HTTP ] [13: M. Sornarajah, The International Law on Foreign Investment, Cambridge: Cambridge University Press, 2010, 3rd ed., p. 183-187 ] [14: The preamble to the 1959 Germany-Pakistan BIT reads as follows: DESIRING to intensify economic cooperation between the two States, INTENDING to create favourable conditions for investments by nationals and companies of either State in the territory of the other State, and RECOGNIZING that an understanding reached between the two States is likely to promote investment, encourage private industrial and financial enterprise and to …show more content…
However, this paper will not evaluate all the issues raised in Methanex case; it only presents the third issue in the scope of Article 1110 of NAFTA. The Tribunal argues that ?Measure enacted by California was a lawful regulation and not an expropriation?.[footnoteRef:44] The Methanex award has been compared to the award of Metaclad v. Mexico in regard the measure tantamount to expropriation because of the different award given by tribunal. The Tribunal in Methanex case did not use the Metaclad approach, instead relying expropriation more on traditional international law understanding.[footnoteRef:45]. [44: Final Award, Part IV, Chapter D, para 7.] [45: Methanex award, part IV, chapter D, p. 4, para.

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