ABSTRACT
In recent years, there has emerged a proliferation of various types of clauses of exceptions in international investment agreements (IIAs). This chapter focuses on the two major types of exceptions increasingly commonly seen in IIAs, namely the clause of general exceptions and the clause of security exception. The clause of general exceptions is typically known in WTO/GATT law. In principle, the clause of general exceptions conforms to the WTO's policy goal of promoting sustainable development in global trade governance. In general, the threshold for the application of GATT Article XX exceptions is high. According to the Australian government, incorporation of a GATT-style clause of general exceptions in IIAs is a sensible way to improve the existing IIA system. States routinely restrict trade and other economic relations for security reasons. The coverage of a security exception is a major determinant of the practical effectiveness of the exception. Modern IIAs often incorporate one or more types of exceptive provisions, as a general or special exception.
