ABSTRACT
This chapter explores the linkages between the law that governs foreign investment and water resources management. It provides a brief introduction to the general structure of international investment agreements. It provides a discussion of relevant investment cases, classifies water uses by foreign investors, into three groups: as a tradable good, as an input of economic activities and as a service, for the provision of water supply and sanitation. Perhaps similar to water law and governance, international investment law is a relatively new area of international economic law. Protection of property and aliens abroad, through diplomatic means, and protection of private property, through early treaties on navigation and commerce, have all contributed to the development of modern international investment law and arbitration. The first two standards of protection – national treatment and most favoured nation treatment – are both relative standards. The new provisions seek to provide interpretative guidance in the application of certain standards of protection.
