Title Page
ABSTRACT
Contents
1. INTRODUCTION 10
1.1. DEFINITION 10
1.1.1. Portfolio investment and foreign direct investment 10
1.1.2. The history of the international law on foreign investment 12
1.2. FOREIGN DIRECT INVESTMENT IN BILATERAL INVESTMENT TREATIES 13
1.2.1. The definition of Foreign direct investment in the international investment treaties 13
1.2.2. Bilateral investment treaties: definition, history and introductory survey. 14
1.3. FOREIGN DIRECT INVESTMENT AND THE ENVIRONMENT 17
1.3.1. The debate 17
1.3.2. Requirements relating to environmental protection 19
1.4. CONCLUSION 20
2. THE IMPACT OF BITs ON DEVELOPING COUNTRIES: ENVIRONMENTAL CONCERNS 21
2.1. BASIS PROVISION 21
2.1.1. Countries are using the references in bilateral investment treaties about environmental concerns 22
2.2. THE REFERENCES TO ENVIRONMENTAL CONCERNS IN BITS 27
2.2.1. General references to environmental concerns in preambles 30
2.2.2. The policy space for environmental regulation 32
2.3. THE IMPACT OF BITS ON DEVELOPING COUNTRIES 40
2.3.1. Costs and Benefits of bilateral investment treaties 40
2.3.2. The cost and risk 41
2.4. CONCLUSION 43
3. EVIDENCE IN DEVELOPING COUNTRIES 44
3.1. DEVELOPING COUNTRIES ARE SUBJECT TO MORE CLAIMS: STATISTICAL STUDY. 44
3.2. ENVIRONMENTAL MATTER AND INTERPRETATION 47
3.2.1. Environmental matter and Investor-State Dispute Settlement 47
3.2.2. Interpretation 52
3.2.3. Case study : S.D. Myers v. Canada 53
3.3. INVESTORS REACTIONS 62
3.3.1. Case study: Ecuador vs. Chevron 65
3.3.2. Case Study: Costa Rican 69
3.4. CONCLUSION 78
4. SOLUTION AND DIRECTION 80
4.1. INTERNATIONAL ECONOMIC AGREEMENTS MUST RESPECT ENVIRONMENTAL LAWS 80
4.1.1. General promotion of progress in protecting the environment and cooperation 80
4.1.2. Common environmental concerns that do not appear in bilateral investment treaties 82
4.1.3. Reforming international investment agreements to sustainable development 88
4.2. SETTING A FRAMEWORK FOR SUSTAINABLE DEVELOPMENT 93
4.2.1. Binding Minimum Environmental Standards 93
4.2.2. Not lowering standards - discouraging relaxation of environmental standards to attract investment 95
4.3. CONCLUSION 101
5. PROPOSAL: THE CASE OF VIETNAM 103
5.1. FOREIGN DIRECT INVESTMENT IN VIETNAM 103
5.2. CASE STUDY IN VIETNAM: FORMOSA PLASTIC GROUPS' 104
5.2.1. Formosa Ha Tinh Steel Corp case study 104
5.2.2. Analysis 105
5.3. ORIENTATION AND SOLUTION FOR VIETNAM 106
5.4. CONCLUSION 108
6. CONCLUSION 109
7. REFERENCE 110
ANNEX I. Policy purpose of environmental language in IIAs 121