The power of the State vis a vis foreign investors in the context of international investment agreements is a constant source of debate.
What does this right to regulate entail? Is it unfettered? Does it impact investment? What kind of policy space is given to States? Where is the balance? How much of the right to regulate is necessary and howmuch is excessive? Is there a standard model?
This piece in the Kluwer Arbitration Blog on the first day of the new year explores the right to regulate in the context of the EU-Angola Investment Agreement.
Take a look here.
Lessons: The landscape for rule making is constantly changing and there is a fertile ground for experimentation. It is a weapon for exploitation or a shield againts unfair aggrandisement.
