International Investment Law

Running head: CORPORATIONS AND BUSINESS LAW
INTERNATIONAL INVESTMENT LAW
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1CORPORATIONS AND BUSINESS LAW
Introduction:
An International Investment Agreement (IIA) is treaty between the countries which
refers to the issues in relation to investments across border generally for the reason of
promotion, protection and liberalisation of those investments (Subedi 2016). The concept of
‘right to regulate’ is observed as a complex aspect of understanding the growth of the
international investment law and its policy (Mouyal 2016).
Discussion:
The States’ right to regulate as well as control for the public interest has been the
main point of focus of increasing interest recently by finding formal acknowledgement in
several agreements of international investment. Formal consideration of this right of
regulation has been referred to greatly as a type of positive growth for making IIAs
comparatively more balanced in addition to giving the arbitral tribunals a clear information
against limiting the regulatory space of the States. This right to regulate can be regarded as
the sovereign right of any State to regulate the public policy for the interest of the public. As
the IIAs were formed to restrict some of the aspects of the rights of the countries to regulate,
the 1st wave of the IIAs prevented the regulatory experimentation regulated by the host
countries which could impose harm and affect the rights of the foreign investors. Increasing
number of domestic criticism together with new challenges before the tribunals against the
countries that have developed made them seek some policy space within the IIAs under the
ambit of the right of regulation. This improvisation in the investment law has mainly
benefited the countries that aim to regain the policy space in areas of health, safety and
environment.
In the light of this debate together with approaches based on development, countries
located in the Global South have failed to get same attention. From the aspect of the