Application Of The Umbrella Article Rule In Bilateral Investment Agreements International Practice

Аннотация

The Bilateral Investment Treaty (BIT) is the most common type of agreement in private international law to protect the rights and legitimate interests of investors. According to UNCTAD, more than 2,500 bilateral investment agreements have been signed between the two countries to date. The study found that 40 percent of them applied the “Umbrella clause” rule. The article examines the scientific and theoretical views of international economists and jurists, the analysis of existing contracts under the Umbrella clause, as well as international practice in this area, and defines the Umbrella clause rule. The analysis revealed the pros and cons of the "Umbrella Clause" rule, the advantages and disadvantages of law enforcement practice under this rule. The impact of the "Umbrella clause" rule on the outcome of bilateral investment disputes has been evaluated. At the same time, the lack of a uniform approach to the application of contract terms under the "Umbrella clause" rule in international arbitration has been described as a constant source of disagreement. The article discusses the prospects for the application of the “Umbrella clause” rule in bilateral investment agreements. KEYWORDS Umbrella Clause, Bilateral Investment Agreement, International Legal Guarantees, Foreign Investor, Host Country, Model Agreement, Obligation. The U S A Journals Volume 03 Issue 12-2021 68 The American Journal of Political Science Law and Criminology IMPACT FACTOR (ISSN – 2693-0803) 2021: 5. 952 Published: December 22, 2021 | Pages: 68-75 Doi: https://doi.org/10.37547/tajpslc/Volume03Issue12-11