The Regionalisation of Laws and Policy on Foreign Investment
Chapter 10: Standards of protection: Protecting investors and investments
Investment agreements enshrine a series of obligations on the parties, aiming at ensuring a stable and favourable business environment for foreign investors. These obligations pertain to the treatment that foreign investors and their investments are to be afforded in the host country by the domestic authorities, as well as ensuring foreign investors the ability to perform certain key operations related to their investment. The ‘treatment’ granted to investors encompasses many different laws, regulations and practices from public entities that apply to or affect the foreign investors or their investments. All public entities are bound by international obligations, including the federal and sub-federal governments, where applicable, local authorities, regulatory bodies and entities that exercise delegated public powers. Measures adopted by private actors can also – although rather exceptionally – fall under the scope of international agreements when such private measures can ultimately be attributed to a governmental entity.
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