Are investment treaty claims assignable?

What is it about?

The article examines whether foreign investors are entitled to assign their claims arising out of the breach of investment treaties by host States. It distinguishes between legitimate and illegitimate assignment and argues that the former ought to be permitted, as they are in line with both the doctrinal underpinnings of the investment treaties regime and the legitimate policy considerations of States.

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Photo by Precondo CA on Unsplash

Photo by Precondo CA on Unsplash

Why is it important?

The assignment of investment treaty claims has been only scarcely treated in the literature. Nevertheless, distinguishing between permissible and impermissible assignment on a sound doctrinal and policy basis will offer welcome clarity to all stakeholders. Such clarity may in turn lead to greater investment inflow particularly from SME, which are generally reluctant in using investor-state arbitration due to the high costs implied. On the other hand, it will also allow States to effectively protect themselves from abusive or otherwise illegitimate assignments.