The Journal of

WORLD INVESTMENT & TRADE

ABSTRACTS

Diana Bayzakova: Zarafshan-Newmont Case and International Investment Arbitration: A Shift with Profound Implications for Uzbekistan ?

Although policy statements verbalised by the president always manifest strong disclosure of the country for involvement of international actors, case of Zarafshan-Newmont was reported to set a dangerous precedent to the whole legal framework for investment protection in Uzbekistan . So, given the importance of dispute resolution with respect to foreign investment in a neutral forum and the standing of Icsid in this area, this paper attempts to explore the condition of consent to be met under Article 25 of the Icsid Convention within the framework of potential arbitral proceedings between the Republic of Uzbekistan and foreign investors.

Diana Bayzakova is a Research Assistant at the Centre for Energy, Petroleum and Mineral Law and Policy (Cepmlp).

Francisco González de Cossío: Mexico Before Icsid: Rebel Without a Cause?

Although Mexico has included in all the investment treaties it has ratified the possibility that a foreign investor bring suit under the Convention on the Settlement of Investment Disputes between States and Nationals of other States (Icsid Convention), Mexico has not become part of the Convention.  A critique is offered on this omission, discussing its impact and urging the correction of the situation.

Francisco González de Cossío, JD (Universidad Iberoamericana, Mexico City ), LL.M and Ph.D ( University of Chicago ), is an active advocate and arbitrator in domestic and international disputes with González de Cossío Abogados and Professor of Arbitration and Investment Arbitration at the Universidad Iberoamericana and the Escuela Lebre de Derecho.

Getahun Seifu: “Regulatory Space” in the Treatment of Foreign Investment in Ethiopian Investment Laws

The provisions on non-discriminatory treatment of foreign investments in bilateral investment treaties (Bits) and the required policy space for regulatory flexibility are in constant conflict. Though one of the underlying purposes of Bits is balancing these interests and providing adequate international legal protection, they do not appear to be clear and consistent enough to respond to this objective. Rather, they are crafted in a variety of ways, though they look standardized, with differing levels of treatment and extents of coverage. Examining them in the light of local legislations would call in a host of other additional issues including expansion of the host State’s regulatory freedom. Thus, this article examines the need to liberalize the restrictions on treatment of foreign investment vis-à-vis the need for policy space aimed at good management of economic development.

Getahun Seifu, LL.B ( Addis Ababa University ), LL.M in International Trade  and Investment Laws in Africa ( University of Pretoria ), is Manager for Compliance Monitoring at Ethiopia Commodity Exchange and part-time lecturer-at-laws at various higher institutions in Addis Ababa .

Bishnu K. Adhikary and Alemu Aye Mengistu: Factors Influencing Foreign Direct Investment (Fdi) in “South” and “Southeast” Asian Economies

This paper attempts to identify and analyze the main determinants of inward foreign direct investment (Fdi) in the “South” and “Southeast” Asian emerging economies. Towards this effect, a panel data of 312 observations from 12 countries from year 1981-2006 have been analyzed. The results unearth that market size, income per-capita growth, interest rate, human capital, infrastructure, degree of openness and cheap labor are positive and significant determinants of inward Fdi in the region. Importantly, the study provides evidence that a one percent increase in secondary school enrollment ratio in a country may stimulate Fdi inflow by about 0.65 percentage point. Conversely, as opposed to the conventional finding, the study identifies that a highly depreciating local currency may discourage inward Fdi into the region. However, the study finds no evidence on the relationship between inflation and Fdi inflow. The study concludes that Fdi in this region can be used as a compliment, not a substitute, for domestic investment.

Bishnu K. Adhikary is an Assistant Professor at Ritsumeikan Asia Pacific University in Beppu City , Japan .

Alemu Aye Mengistu is a PhD Candidate at the Graduate School of Asia Pacific Studies of Ritsumeikan Asia Pacific University.

Timothy G. Nelson and Jennifer M. Cabrera: The Taiwan Relations Act, 30 Years On – Encounters and Successes in the U.S. Courts

Following its diplomatic recognition of the People's Republic of China in January 1979, the United States officially withdrew its recognition of the Republic of China as the government of Taiwan .  Desiring to maintain economic and legal ties with Taiwan , however, the U.S. Congress passed the Taiwan Relations Act of 1979.  This article presents an overview of the Taiwan Relations Act, a unique statute which has allowed the United States to continue private law relationships with Taiwan – facilitating cooperation in areas like arbitration and copyright – and maintain de facto diplomatic ties with the Taiwanese government for nearly three decades, without ever recognizing the Republic of China as a sovereign state.

Timothy G. Nelson is a Partner in the International Litigation and Arbitration Group of Skadden, Arps, Slate, Meagher & Flom Llp in New York .

Jennifer M Cabrera is an Associate in the International Litigation and Arbitration Group of Skadden, Arps, Slate, Meagher & Flom Llp in New York .

Bin Chen: On the Establishment of the Legal Framework on the Logistics Industry in Cafta: A Perspective of Regionalism and Multilateralism

The logistics is a process of material inflow in nature, and the modern logistics activities cover various areas and sectors. In the article, the legal rules of logistics was defined as an integral system which consists of trade law on goods, institutional law on logistics, law on logistics activities, and law on logistics economy regulation. Then the related rules on logistics in the Wto system were further analyzed. Although there is no specific or targeted regulation on logistics as a whole industry in the Wto system, the rules of most of the agreements are related to logistics and these rules constituted the international legal framework on logistics under the Wto system. In passed two decades, the regionalism effectively supplied the shortcoming of multilateralism in the field of trade, and Rtas got a surprised increasing all over the world. So, China jumped in the tidal wave of Rtas as well. The Cafta is a significant accomplishment in the process. However, the co-operation between China and Asean just stopped in paper. The trade in services, especially logistics industry can not get enough care. So, logistics industry, especially the legal framework on logistics industry in Cafta should be established as soon as possible. In the framework, the theory foundation, main principles and key content about the issue should be discussed deeply.

Bin Chen is a joint doctoral student of Wuhan University (China) and l’Université Paul Cézanne Aix-Marseille III (France) as a recipient of State Scholarship Fund of China, editor of the International Law Review of Wuhan University, visiting scholar under Unidroit, researcher under the Doctoral Scholarships Programme of the Hague Academy of International Law, research fellow of Heidelberg Max Plank Institute for Comparative Public Law and International Law, research fellow of T.M.C. Asser Instituut, and a member of the Society of International Economic Law (SIEL), the Association for International Arbitration (AIA), and Asian Competition Forum (ACF). Currently, his research interests focus on international trade law and public international law.