14 Investment Treaty Exceptions, Modifications, and Terminations

Subject(s):

BITs (Bilateral Investment Treaties) — Treaties, amendments and modification — Treaties, invalidity, termination, suspension, withdrawal — ECT (Energy Charter Treaty) — Regulatory expropriation (or regulatory taking) — Object & purpose (treaty interpretation and)

This chapter considers the investment treaty devices of exceptions, modifications, and terminations. A state can encounter tensions between its perceived national interests and its requested or ratified treaty obligations in the negotiation and implementation of treaties. It has three basic devices to mediate these tensions. The first, which is employed as part of the negotiating process, is to create specific exceptions in the treaty to assure a host state sufficient latitude of action for the future. The other two, which are invoked after the investment treaty enters into effect, are for a state to modify the treaty provisions by agreement with other contracting parties or to terminate participation in the treaty and thus end its international investment obligations.