The Interpretation of International Investment Treaties. The Application of MFN Clauses to Matters of Dispute Settlement in BITs

      Аннотация: The decisions of the arbitral tribunals have been under heavy attack, certainly, for the inconsistent and unintended interpretations that went beyond the intent of the parties as it is expressed in the treaty provisions. One of these misinterpreted provisions is the MFN clause. Regardless of the wording of this clause, many tribunals use it to allocate the adjudicatory authority between international arbitration and domestic courts. The root cause of the interpretive problems in investor-state arbitration is the neglect and misapplication of the international rules on treaty interpretation. This book demonstrates that interpretation is not an exact science, however, it still a science that requires the application of particular rules to produce correct results. The international rules of interpretation in the VCLT provide a balance approach to treaty interpretation and recognize equally the legitimate rights and interests of the host states and foreign investors. A full compliance with these rules works as a roadmap to reach correct interpretations that are consistent with the parties’ intent as it is expressed in the terms of the treaty.

Ключевые слова: treaty interpretation, International Investment Treaties, international investment arbitration, Bilateral Investment Treaties (BITs), Dispute Settlement provisions, Dispute Settlement Arrangements, International Trade Law, Most Favored Nation clause (MFN clause), A Third-Country BIT, Arbitral Tribunals