Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


Regulatory Exception Under Ethiopian Bilateral Investment Treaties

Author(s): Mohammed Ibrahim Ahmed

The Investors-State Arbitration (ISA) under traditional model Bilateral Investment Treaties (BITs) has shown the interference of the system with the regulatory right of host States. Lately, this necessitates the introduction of express regulatory exceptions in the form of general exceptions, exclusions, reservations and general right to regulate under new generation of BITs. The textual evaluation of all Ethiopian BITs entered into force so far shows that they did not incorporated express regulatory exceptions. I believe that the separate incorporation of these express regulatory exceptions may provide wider regulatory space than old model BITs which is devoid of the same, but not balance States right to regulate with investors protection. The 2021 Canada model BIT, the 2006 IISD Model International Agreement on Investment for Sustainable Development and the 2012 SADC model BIT are enacted combining these express regulatory exceptions with the same objective. Ethiopia should learn from this experience

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