Investment Screening and Scope of Protection of Investment Protection Agreements

Sammanfattning

Investment screening can be defined as host state’s sovereign judicial and/or administrative authority to monitor the investments, specifically foreign direct investments of the foreign investors. Naturally, host states would use their rights for legislative power especially in sensitive sectors by nature such as defence systems, energy, transportation, natural resources; or sectors that are vulnerable for the host state. However, on the other edge of the investment, it is clear that, foreign direct investments have an important role for financial growth and direct and indirect effects such as employments. Theoretically it is being accepted that there must be a balance between host states’ legislative power and security of the foreign investment. Hence; investment screening regime is on one side and protection of investors/investments are on the other side.