DIALEKTIKA PERBEDAAN INTERPRETASI UMBRELLA CLAUSE DALAM BILLATERAL INVESTMENT TREATIES SEBAGAI PERLINDUNGAN INVESTOR DALAM PUTUSAN ARBITRASE ICSID SGS V. PAKISTAN DAN SGS V. PHILIPPINE
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Published:
Jul 29, 2023
Keywords:
Investor-state dispute settlement, Bilateral Investment Treaties, Umbrella Clause, Breakfast Theory of Jurisprudence, ICSID
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Abstract
Investor-state dispute settlement in current developments has become a problem that often arises in international investment affairs. There are two different objectives, where investors aim to get the maximum profitability and host states aim to benefit from investment while taking into account the national interest in the country. However, the difference in objectives still has something in common, namely investors and host states have equal treatment of their respective rights protected by Bilateral Investment Treaties (BIT) or Contractual Commitments which ultimately conflict gives birth to disputes. The umbrela clause is present in the BIT between the parties as an effort to provide protection for related investments from forms of breach of contract that occur. However, problems arise when two ICSID rulings are born from which give different interpretations of the umbrella clause. This paper is doctrinal with secondary qualitative data collection. The problem approach used in this study is a conceptual approach, by examining the umbrella clause both from previous arbitration awards and expert opinions.This study resulted in conclusions that emphasized the breakfast theory of jurisprudence as the main factor that determines judges in making different interpretations of umbrella clause
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Fitri, A. (2023). DIALEKTIKA PERBEDAAN INTERPRETASI UMBRELLA CLAUSE DALAM BILLATERAL INVESTMENT TREATIES SEBAGAI PERLINDUNGAN INVESTOR DALAM PUTUSAN ARBITRASE ICSID SGS V. PAKISTAN DAN SGS V. PHILIPPINE. UNES Law Review, 5(4), 4411-4427. https://doi.org/10.31933/unesrev.v5i4.749
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Dolzer, Rudolf., Christoph Schreuer., “Principles of International Investment Law (2nded)”, (Oxford: Oxford Univeristy Press, 2012)
K. Bjorklund, Andrea., “National Treatment”; in August Reinisch (ed.), “Standards of Investment Protection”, (London: Oxford University Press, 2008)
Klager, Roland., “Fair and Equitable Treatment in International Investment Law”, (Cambridge: Cambridge University Press, 2011)
Sornarajah, M., “The International Law on Foreign Investment, 3rd ed”, (New York: Cambridge University Press, 2010)
A. Alexandrov, Stanimir., “Introductory Note to International Centre for the Settlement of Investment Disputes (ICSID): SGS Societe Generale De Surveillance S.A. v. Pakistan”,International Legal Materials, Vol. 42, No. 6 (2003), 1285-1289
Antony, Jude., “Umbrella Clause Since SGS v. Pakistan and SGS v. Philippines – A Developing Consensus”, Arbitration International, Vol. 29, No. 4 (2013), 607-639
C. Sinclair, Anthony., “The Origins of the Umbrella Clause in the International Law of Investment Protection”, Arbitration International, Vol. 20, No. 4 (2004), 411-434
D. Sutton, Stephen., “Emilio Augustin Maffezini v. Kingdom of Spain and the ICSID Secretary-General’s Screening Power”, Arbitration International, Vol. 21, No. 1 (2005), 113-126
DiMascio, Nicholas., Joost Pauwelyn., “Nondiscrimination in Trade and Investment Treaties: Wolrds Apart or Two Sides of The Same Coin?”, American Journal of International Law, Vol. 102, No. 1 (2008), 48-89
Emami, Mujeeb., Rehna Gul., “Diversity in the Formulation of Fair and Equitable Treatment in International Investment Agreements”, Journal of East Asia and International Law, Vol. 14, No. 1 (2021), 79-100
Gill, Judith., Matthew Gearing, Gemma Birt., “Contractual Claims and Bilateral Investment Treaties: A Comparative Review of the SGS Cases”, Journal of International Arbitration, Vol. 21, No. 5 (2004), 397-412
L. King, Willard., “Breakfast Theory of Jurisprudence”, Dicta, Vol. 14, No. 6 (1937), 143-146
M. Perrone, Nicolás., “Bridging the Gap between Foreign Investor Rights and Obligations: Towards Reimagining the Internaitonal Law on Foreign Investment”, Business and Human Rights Journal, Vol. 7 (2022), 375-396
Nichols, Shawn., “Transnational Capital and the Transformation of the State: Investor-State Dispute Settlement (ISDS) in the Transatlantic Trade and Investment Partnership (TTIP)”, Critical Sociology, Vol. 45, No. 1 (2019), 137-157
Paramita, Kartika., “Much in Little: The Umbrella Clause that Changes the International Investment Protection Standard”, Hasanuddin law Review, Vol. 6, No. 1 (2020), 25-45
Patrick Ng’ambi, Sangwani., “Permanent Sovereignty Over Natural Resources and the Sanctity of Contracts, From the Agnle of Lucrum Cessans”, Loyola University Chicago International Law review, Vol. 12, No. 2 (2015), 153-172
Roshana Putri, Resha., An-An Chandrawulan, Prita Amalia., “Peringkat Arus Investasi Indonesia Dalam Kerangka Asean-China Free Trade Agreement (Perbandingan Dengan Singapura, Malaysia, Thailand, dan Vietnam) Ditinjau Dari Prinsip Fair and Equitable Treatment”, Jurnal Hukum & Pembangunan, Vol. 48, No. 2 (2018), 275-298
Shan, Wenhua., “Is Calvo Dead?”, The American Journal of Comparative Law, Vol. 55, No. 1 (2007), 123-163
T. Muchlinski, Peter., “The Rise and Fall of the Multilateral Agreement on Investment: Where Now?”, The International Lawyer, Vol. 34, No. 3 (2000), 1033-1053
Tamiru, Yehualashet., Nelly C. Rotich., “Rethinking the Standards of Treatment in the Ethiopian and Kenyan BITs: An Approach Towards Certainty”, Bahir Dar University Journal of Law, Vol. 11, No. 2 (2021), 255-284
Tilahun Ayalew, Dessie., “ICSID, Jurisdictional Bases, and Its Arbitral Perspectives: The Arbitral Tales of Umbrella Clause and Its Future”, Avaliable at SSRN: 3674531 (2020), 1-36
Vasciannie, Stephen., “The Fair and Equitable Treatment Standard in International Investment Law and Practice”, British Yearbook of International Law, Vol. 70, No. 1 (1999), 99-164
Williamson, John., “The Strange History of the Washington Consensus”, Journal of Post Keynesian Economics, Vol. 27, No. 2 (2005), 195-206
Kumar Mallick, Arpit., “Interpretation of the Umbrella Clause in Bilateral Investment Treaties”, Available at SSRN 3859323 (2020)
International Centre for the Settlement of Investment Disputes Case No. ARB/01/13, SGS Société Générale de Surveillance S.A v. Islamic Republic of Pakistan
International Centre for the Settlement of Investment Disputes Case No. ARB/02/6, SGS Société Générale de Surveillance S.A v. Republic of the Philippines
Peter A. Allard v. The Government of Barbados, PCA Case No. 2012-06 (2016)
Suez, Sociedad General de Aguas de Barcelona S.A., and Vivendi Universal S.A v. The Argentine Republic, ICSID Case No. ARB/03/19, para 212 (2010)
United Nations Conference on Trade and Development, “Facts on Investor-State Arbitrations in 2021: With a Special Focues on Tax-Related ISDS Cases”, International Investment Agreements Note, No. 1 (2022)
Yannaca-Small, Katia., “Interpretation of the Umbrella Clause in Investments Agreements”, OECD Working Papers on International Investment 2006/03 (2006)