The UK government is currently respondent in active investor-state arbitrations including Woodhouse/West Cumbria Mining and Mr Mikhail Fridman's claim, representing a new frontier given the UK's network of over 80 bilateral investment treaties.
Expert evidence on the political and regulatory context of UK government decisions is central to these proceedings. The National Security and Investment Act 2021 creates a framework for reviewing foreign investments affecting national security.
UK domestic law generally treats foreign and domestic investors equally, but treaty protections provide foreign investors access to investor-state arbitration for alleged treaty breaches.
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Frequently Asked Questions
What are the UK's investor-state arbitration obligations?
The UK does not have specific national legislation protecting foreign investment; domestic laws generally treat foreign and domestic investors equally. However, with over 80 bilateral investment treaties, foreign investors have access to investor-state arbitration against the UK for treaty breaches. Expert evidence on UK regulatory and policy decisions is essential in these proceedings.
How does the National Security and Investment Act 2021 affect political risk claims?
The National Security and Investment Act 2021 allows the UK government to review and potentially block foreign investments affecting national security. This creates a limited exception to the equal treatment principle and a potential basis for investor-state claims where interventions affect qualifying foreign investments.