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Research on the Application of Exhaustion of Local Remedies Principle in the Settlement of International Investment Disputes

Author: LiuLi
Tutor: XiaoPeng
School: Ocean University of China
Course: International Law
Keywords: international investment disputes settlement exhaustion of local remedies measures and suggestions
CLC: D996.4
Type: Master's thesis
Year: 2010
Downloads: 291
Quote: 0
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Abstract


Exhaustion of local remedies is an old and important principle in International Law. It is part of the traditional national liability legal system and was been adopted in diplomatic practice by many countries since the beginning of the 18th century. In the field of traditional international law, the principle has been widely accepted as international conventional law since the 19th and 20th century. After the Second World War, the principle of exhaustion of local remedies was boosted in the field of international investment disputes settlement. That was based on the humanistic ideology of human right protection and equality of native and foreign people. The principle of exhaustion of local remedies is a balance between the following three relationships:foreign investors and host countries; host countries and the native countries of foreign investors; fairness and effectiveness in the settlement of international investment disputes. Therefore, it is not proper to absolutely adopt or deny the principle of exhaustion of local remedies in the field of international investment disputes settlement. Nations should practically and properly apply the principle of exhaustion of local remedies to bilateral investment agreements, regional investment agreements and multilateral investment agreements with accordance to their own circumstances and international environment.This paper is based on the aforementioned idea. It comprehensively analyzes the mechanism of international investment disputes settlement, the meaning, theoretical basis and practical reasons for applying the principle of exhaustion of local remedies and the application of the principle by means of synthetical study. The purposes of this paper are to summarize the experience in the synthetical study and to forward measures and suggestions for applying the principle of exhaustion of local remedies in the field of foreign investment disputes settlement of our country.This paper consists of the following four parts:The first section is an overall introduction of the mechanism of international investment disputes settlement. It explains the means of settlement of international investment disputes in the International Law.The second section makes a comprehensive introduction of the principle of exhaustion of local remedies which contains the meanings and the practical reasons and theoretical basis for applying the principle.The third section is a thorough analyses of the problems in the application of the principle of exhaustion of local remedies in the international investment disputes settlement and the humanistic ideology thereof. It then discusses the necessities of applying the principle in the mechanism of international investment disputes settlement on the basis of real cases. Finally, it examines the status quo of the application of the principle of exhaustion of local remedies in bilateral investment agreements and multilateral investment agreements.The fourth section analyses the attitudes of many different countries towards the principle of exhaustion of local remedies and forward measures and suggestions in better application of the principle of exhaustion of local remedies in the field of foreign investment disputes settlement of our country.

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CLC: > Political, legal > Legal > International law > International Economic Law > International Investment Law
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