General exception clauses in bilateral investment treaties: problems and perspectives
DOI:
https://doi.org/10.17308/law/1995-5502/2025/1/219-227Keywords:
international investment law, bilateral investment treaty, general exception, investment arbitrationAbstract
They are the concept and applicability of the general exception to the obligations of the host state are considered, focusing on the substantive aspect of exception clauses in bilateral investment treaties and the practice of application of these clauses by international investment arbitrations in Copper Mesa Mining v. Ecuador, Bear Creek v. Peru and Eco Oro v. Columbia. A parallel is drawn with a conceptually similar general exception in WTO law. Different interpretations of the exception and their impact on the award of compensation to a foreign investor are considered. It is concluded that despite the proliferation of exceptions in modern bilateral investment treaties, the jurisprudence of investment tribunals has seriously limited their practical applicability.
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