Investment protection and the public interest: Competition and (commercial) speech

2014 ◽  
Vol 23 (1) ◽  
pp. 1-22
Author(s):  
Francesco Francioni

In spite of occasional references to the “public interest” or the “public good” in legal instruments on foreign investment and in arbitral practice, effective implementation of the concept remains elusive. This is the case first of all due to the fact that arbitrators are faced with the difficulties inherent in performing the delicate function of a quasi “judicial review” of contested host State’s measures. The second factor relates to the fact that the notion of “public good” that emerges from contemporary arbitral practice is confined to the national public interest of the host State and does not include the general interest of the international community as a whole. This article argues that, given the present state of the international economy, the regime of investment protection has to be reconciled not only with the public interest of the host State but also with the emerging concepts of international common goods, which include the global environment, human rights and the cultural heritage of humanity. Given the lack of global institutions responsible for the management of such common goods, this article advocates a functional approach to the exercise of sovereignty that transcends the traditional principles of territoriality and nationality and entails the obligation of both home and host countries to take into account the effects of their investment policies on the general interest of the international community.


2018 ◽  
Vol 5 (2) ◽  
pp. 205-225 ◽  
Author(s):  
Johannes Kniess

Abstract Investment protection clauses, and the investor-state dispute settlement (ISDS) mechanisms they enable, have become a common feature of international agreements on trade and investment. Intended to promote foreign investment, these protections may also discourage governments from regulating in the public interest. This raises challenging normative questions about the rights of investors and distributive justice. In this paper, I argue that a global investment regime that disadvantages developing countries and socially disadvantaged groups is prima facie unfair. This conclusion must be defended against the claim that investors have certain independent moral rights to have their property protected, regardless of the distributive consequences. Granting the premise that such investor rights exist, I argue that these cannot plausibly ground a general rule against public interest regulation that undermines the value of property. I conclude that even if foreign investors have rights that must be safeguarded, the current investment regime must be reformed.


2020 ◽  
Vol 23 (2) ◽  
pp. 413-429
Author(s):  
Muthucumaraswamy Sornarajah

Abstract Resistance to the law made through expansionist interpretation of investment treaties by arbitral tribunals has led to the disintegration of the resulting structure of investment protection. The creation of an inflexible system of investment protection through arbitral interpretation undermines the exercise of power of states to take measures to protect the public interest. The process of disintegration of this unjust system must be hastened through the creation of new norms that ensure that obligatory rules deter the misconduct of multinational investors. If investment treaties are necessary, the regulatory power of states to promote the public interest should be given priority over investment protection.


2011 ◽  
Vol 37 (2-3) ◽  
pp. 299-314 ◽  
Author(s):  
David Orentlicher

Historically, government has been given more leeway when invoking its interests in safeguarding the public health than when asserting other state interests. Thus, for example, when considering a constitutional challenge to mandatory smallpox immunization in Jacobson v. Massachusetts, the Supreme Court employed its highly deferential, rational basis review rather than the stricter level of scrutiny that it normally employs when individuals assert interests in bodily integrity. Similarly, Congress and the Food and Drug Administration (FDA) have imposed greater restrictions on the speech of pharmaceutical companies than have been considered acceptable for speech in other commercial settings.In recent years, however, it appears that a trend is developing toward applying the same level of constitutional scrutiny to health regulation. In Abigail Alliance, a three-judge panel in the U.S. Court of Appeals for the D.C. Circuit overrode FDA regulations to recognize a constitutional right of access for patients to experimental chemotherapy.


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