What Is Investment Protection Agreement

Unlike investment protection, investment promotion provisions are rarely formally included in AI and, if so, these provisions generally remain non-binding. Nevertheless, improving the formal protection offered to foreign investors through an I2 should encourage and encourage cross-border investment. The benefits of higher foreign investment are significant for developing countries that wish to use foreign investment and IDAMIT as instruments to improve their economic development. IIA Navigator This IIAs database – the IIA Navigator – is managed by the IIA section of UNCTAD. You can browse THE IIAs that are completed by a given country or group of countries, view the recently concluded IIAs, or use advanced research for sophisticated research tailored to your needs. Please quote as: UNCTAD, International Investment Agreements Navigator, available from investmentpolicy.unctad.org/international-investment-agreements/Assed Nationality of an Investor has a special meaning under the investment contract Arbitration procedure s.I. This is because investors from a contracting state other than the one in which the investment is made can only benefit from protection. This rule is qualified by the fact that the parties to the dispute may agree that a national of the State Party in which the investment is made must be considered a national of another State Party on the basis of a foreign control. Therefore, where a host state requires that a company incorporated in that state be able to make an investment, that company could continue to be considered a national of another contracting state if it were controlled by nationals of that contracting state. This satisfies both the host Member State, which wants investments by local companies, and the investor who, despite the nationality of the investment vehicle, enjoys the protection of ICSID.

(b) the existence of a dispute arising from an investment between a contracting state of ICSID1 and a national of another contracting state of ICSID. Impalpability clauses provide that a host government cannot unilaterally nationalize a project or modify an investment contract.