Investment Treaty News Quarterly

The July 2012 issue of Investment Treaty News Quarterly explores the tension between investor protections and the regulatory autonomy of states. Key discussions include the use of deferential standards of review to enhance the legitimacy of investor-state arbitration and the risks associated with unilateral offers to arbitrate in national investment codes. The document also analyzes how international investment agreements can clash with the provision of public services and the increasing trend of investors challenging renewable energy feed-in tariffs (FiTs) and domestic content requirements. Additionally, it reviews the European Commission's draft text for investor-state dispute settlement in EU agreements and provides summaries of recent arbitral awards involving countries such as Slovakia, Cuba, Paraguay, Ecuador, and Turkey.

• The application of a deferential standard of review in investor-state arbitration can help balance the public regulatory needs of states with the private interests of investors, potentially mitigating the 'legitimacy crisis' and 'backlash' against the system.
• National investment codes can create binding international obligations through unilateral undertakings. These generally fall into four patterns: 'no-arbitration' (silent on arbitration), 'opt-in' (domestic courts first), 'optional' (requires mutual agreement), and 'mandatory' (clear-cut unilateral offer to arbitrate).
• International investment agreements can conflict with the regulation of public services, particularly when states attempt to reform or withdraw from liberalisation and privatisation policies in response to unforeseen economic or social changes.
• The European Commission's May 2012 draft text for investor-state dispute settlement in EU agreements proposes increased transparency, a roster of at least 15 qualified arbitrators, and a Committee for the Settlement of Investor-State Disputes to handle implementation and interpretation.
• Renewable energy feed-in tariffs (FiTs) are increasingly subject to investor claims under investment treaties, specifically regarding 'local content' requirements and the retrospective modification or withdrawal of price supports.
• In the case of Jan Oostergetel and Theodora Laurentius v. The Slovak Republic, the tribunal dismissed the claim and ordered the investors to contribute 2 million Euros to Slovakia's costs due to the poor presentation of the case.
• In SGS Société Générale de Surveillance S.A. v. Republic of Paraguay, the tribunal ruled that Paraguay breached an 'umbrella clause' by failing to pay invoices, ordering the state to pay US$ 39 million plus interest.

APA

International Institute for Sustainable Development (2012). Investment Treaty News Quarterly. https://www.iisd.org/system/files/publications/iisd_itn_july_2012_en.pdf

Chicago

International Institute for Sustainable Development. Investment Treaty News Quarterly. 2012. https://www.iisd.org/system/files/publications/iisd_itn_july_2012_en.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Investment Treaty News Quarterly |date=July 2012 |url=https://www.iisd.org/system/files/publications/iisd_itn_july_2012_en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2012investment, author = {{International Institute for Sustainable Development}}, title = {{Investment Treaty News Quarterly}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = jul, url = {https://www.iisd.org/system/files/publications/iisd_itn_july_2012_en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }