Understanding the concept and Status of "Due Diligence" in international investment law

Document Type : Original Article

Authors

1 PhD, Faculty of Law, Mofid University, Qom, Iran

2 Associate Professor, Faculty of law, Mofid University, Qom, Iran

Abstract

Today, due diligence obligations have a special significance and undeniable role in international law. One of the first and most important fields of emergence of these obligations can be considered international investment law. This study attempts to locate the position of due diligence in international investment law and examine the protective obligations of host state in the light of this overarching concept and furthermore to establish the obligations flowing from due diligence on foreign investors jurisprudence with reference to arbitral tribunals.

This article concluded that due diligence standard serves as a general obligation to impose a duty on the host state to protect foreign investment and at the same time it puts a duty on foreign investor to conduct responsibility to strike a balance between the interests of both sides. As a result, there is no field in international investment law in which due diligence has no role to play.

Keywords

Main Subjects

References

 
References
Books
1. Bungenberg, Marc., Jörn, Griebel., Stephan, Hobe., August, Reinisch., Yun-I, Kim. (Editors). International Investment Law, Germany: Nomos, 2015.
2. Keechang, k. Aliens in Medieval Law, the origins of modern citizenship, United Kingdom: Cambridge University Press, 2004.
3. Krieger, Heike., Anne, Peters., Leonhard, Kreuzer (Editors). Due Diligence in the International Legal Order, United Kingdom: Oxford University Press. 2020.
4. Lowenfeld, Andreas, F. International economic law, Translated by: Mohammad Habibi Mojandeh, Tehran: Jungel, 2016. (in Persian)
5. Mantilla, Blanco, S. Full Protection and Security in International Investment Law, Volume 8, European Yearbook of International Economic Law, Switzerland: Springer, 2019.
6. OECD, International Investment Law Understanding Concepts and Tracking Innovations a companion volume to International Investment Perspectives, Paris: OECD, 2008.
7. Ollino, A. Due Diligence Obligations in International Law, United Kingdom: Cambridge University Press, 2022.
8. Sornarajah, M. The International Law on Foreign Investment, Third Edition, New York: Cambridge University Press. 2010.
9. Subedi, Surya. International Investment Law; Reconciling Policy and Principles, Translated by: Mohammad Habibi Mojandeh, Qom: Mofid University, 2019. (in Persian)
Articles
10. Abdollahi, Mohsen and Saeedeh Mo’arefi, “The principle of common but differented responsibility in international environmental law”, public Law research Quarterly, Volume 12 Issue 29, 2010. (in Persian)
11. Anozie, N. “The Full Security and Protection due diligence obligation”, University of Ottawa, 2016.
12. Baker, J., Lois, Yoder. “ICSID and the Calvo Clause a Hindrance to Foreign Direct Investment in LDCs”, Journal of Dispute Resolution, 5 (1), 1989.
13. De Brabandere, E. “Host States' Due Diligence Obligations in International Investment law”, International Law and Commerce Journal, 42, 2015.
14. Dumberry, P. “Host States’ Due Diligence Obligation towards Foreign Investors in the Context of Rebellion and Civil Wars”, World Investments and Trade Journal, 22, 2021.
15. Ebrahim-Gol, Alireza and Mohsen Nik-Bin, “The Role and Function of General Principles of Law in International Investment Law”, Public Law Studies Quarterly, Volume 53, Issue 2, 2023. (in Persian)
16. Ghanbari Jahromi, Mohammad Jaffar and Mahmoud Mansour Vesali, “Evolution of the State Responsibility Regime in International Investment Law”, Legal Research Quarterly, Volume 18, Issue 71, 2015. (in Persian)
17. Hasibi, Beh-Azin, “International minimum standard and support foreign investors”, Public Law Research Quarterly, Volume 13, Issue 33, 2011. (in Persian)
18. Jacob, M., Stephan, W. S. “Fair and Equitable Treatment: Content, Practice, Method”, Amsterdam Center for International Law, 20, 2017.
19. Kulesza, J. “Human Rights Due Diligence”, William & Mary Bill of Rights Journal, 30, 2022.
20. Matos, Shaun, “Investor Due Diligence and Legitimate Expectations”, Journal of World Investment and Trade, 23, 2020.
21. Nik-Bakht, Hamid Reza, Mehdi Haftani and Sara Mir-Mohammad Sadeghi, “Right of Foreign Nationals and Investors in Access to Energy Grid”, Judiciarys Law Journal, Volume 82, Issue 101, 2018. (in Persian)
22. Rajput, A. “Due Diligence in International Investment Law”, Due Diligence in the International Legal Order, Edited by: Krieger Heike, Anne Peters and Leonhard Kreuzer, Oxford University Press, 38 (6), 2020.
Documents, Cases & Electronic Resources
23. Ampal-American Israel Corp. EGI-Fund (08-10) Investors LLC, EGI-Series Investments LLC, and BSS-EMG Investors LLC, ICSID Case No. ARB/12/11. 2017.
24. Asian Agricultural Products Ltd. v. Republic of Sri Lanka, ICSID Case No. ARB/87/3.
25. Corfu Channel case, Judgment of April 9th, 1949: I.C. J. Reports 1949.
26. Dissenting opinion (Lotus case) by Mr. Moore. Available at:
27. Draft articles on Responsibility of States for Internationally Wrongful Acts, with commentaries 2001.
28. Elettronica Sicula S.p.A. (ELSI) (United States of America v. Italy) ICJ Judgment of 20 July 1989.
29. Emilio Agustin Maffezini v. Kingdom of Spain, ICSID Case No ARB/97/7, (9 November 2000).
30. Guiding Principles on Business and Human Rights: Implementing the United Nations ‘Protect, Respect and Remedy’ Framework, Human Rights Council (A/HRC/17/31), 2011. https://www.icj-cij.org/public/files/permanent-court-of-international-justice/serie_A/A_10/35_Lotus_Opinion_Moore.pdf (last visited on: 17 Aug 2022).
31. ILA Study Group on Due Diligence in International Law; First Report, 7 March 2014.
32. ILA Study Group on Due Diligence in International Law; Second Report, July 2016.
33. Mamidoil Jetoil Greek Petroleum Products Societe S.A. v. Republic of Albania, ICSID Case No. ARB/11/24.
34. OECD Code of Liberalisation of Capital Movements, Last updated 2023. Available at:  https://www.oecd.org/investment/codes.htm. 
35. Plama Consortium Limited v. Republic of Bulgaria, ICSID Case No. ARB/03/24.
36. Reports of International Arbitral Awards, Volume IV, Decisions of Claims Commissions Mexico—United States, United Nations Publications. 1951.
37. Responsibilities and obligations of States with respect to activities in the Area, Advisory Opinion, 1 February 2011, ITLOS Reports 2011.
38. SS Lotus case (France v. Turkey) 1927 PCIJ.
39. Técnicas Medioambientales Tecmed, S.A. v. The United Mexican States, ICSID Case No. ARB (AF)/00/2.
40. The Corporate Responsibility to Respect Human Rights: An Interpretive Guide, United Nations, Office of the High Commissioner for Human Rights.
41. World Charter for Nature. UNGA Res 37/7: 1983.
 

Files

History

  • Receive Date: 14 July 2023
  • Revise Date: 02 February 2024
  • Accept Date: 24 February 2024

Share

How to cite

Statistics