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The Law of Investment Treaties, 2nd Edition by Salacuse, Jeswald W (1st May 2015)

12 Protection Against Expropriation, Nationalization, and Dispossession

From: The Law of Investment Treaties (2nd Edition)

Jeswald W. Salacuse

Subject(s):
Investor — Right to property — Expropriation — Specialized treaty frameworks — BITs (Bilateral Investment Treaties)

While conditions may appear safe for investment property at the time an investment is made, they can change rapidly and dramatically due to shifting political and economic dynamics in host countries, the regions in which they are located, and internationally. Events such as popular uprisings, wars, regime changes, coups, economic crises, and insurrections can jeopardize investment property rights. Thus, when considering an investment in a foreign country, investors always weigh the risks of expropriation, dispossession, and nationalization. This chapter discusses treaty provisions that give protection against expropriation, nationalization, and dispossession. Disputes over expropriation may lead to arbitration or other legal action, and this is also discussed.

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