This course deals with the legal issues arising from the operatoin of multinational enterprises (MNEs), with a particular focus on the legal framework concerning foreign direct investments (FDI). The WTO regime neither provides a comprehensive set of rules applicable to FDI (apart from the Agreement on Trade-Related Investment Measures which covers a limited scope of investment measures) nor includes multilateral rules on investment in the Doha Agenda. On the other hand, at bilateral and regional level, countries have routinely negotiated international investment agreements (IIAs), and by the end of the twentieth century the international regime of foreign investment had taken firm root. Since the conclusion of the first BIT in 1959 between Germany and Pakistan, IIAs have significantly increased both in number and importance. As of the end of 2015, there are over 3,300 IIAs.
This course starts with examining the global and regional trend concerning the flow of FDI, and it discusses positive and negative impact of inward FDI on the capital-importing states. It proceeds to examine how states regulate and encourage MNEs as a major source of inward FDI through unilateral domestic measures. This course then proceeds to examine IIAs as the main international law framework that applies to FDI. It explains the structure and content of IIAs, and examines the issues and challenges the IIA regime now faces.
This course aims to provide an analysis on how the operation of MNEs is both regulated and promoted at the domestic and international law sphere.
Session 1: Impact of FDI, current trend of FDI
Sessions 2 and 3: How FDI by MNEs is regulated and encouraged at a domestic and international level
Session 4: Domestic regulations on inward FDI: a case of Japan
Session 5: IIAs - Structure, Objective and Definition
Session 6: IIAs - Substantive Investment Protection Obligations (1)
Session 7: Interim examination
Session 8: IIAs - Substantive Investment Protection Obligations (2)
Session 9: IIAs - Investment Arbitration (1)
Session 10: IIAs - Investment Arbitration (2)
Session 11: IIAs - Issues and Challenges of IIAs: Asia-Pasific perspective
Session 12: IIAs - Issues and Challenges of IIAs: European Perspective (1)
Session 13: IIAs - Issues and Challenges of IIAs: European Perspective (2)
Session 14: IIAs - The comparison with Investment Court System and the WTO
Session 15: Wrap-up (examination)
P. Muchlinski, Multinational Enterprises and the Law (2nd edn.) (OUP 2007) selected chapters (TBA)
R. Dolzer and C. Schreuer, Principles of International Investment Law (2nd edn.) (OUP 2012) selected chapters (TBA)