The Regionalisation of Laws and Policy on Foreign Investment
Elgar International Investment Law series
The ambit of the application of investment agreements is determined by four main factors: its geographical scope; its temporal application; the subject matter of the agreement and the persons covered by the agreement. Simply put, the scope of application of an investment agreement can be determined by answering four questions: 1. Where must the investment be made?; 2. When must it be made?; 3. By whom? And importantly; 4. which types of investments are covered? The provisions concerning the scope of the agreement are of key importance, since they delimit the cases where the agreement will apply or fail to apply. In particular, the definitions of ‘investor’ and ‘investment’ determine the subject matter of the agreement. Countries may choose to provide ample coverage and permit the broadest group of investors to benefit from the agreement, or they may restrict it to certain qualified investors.
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