Non-Discrimination Treatment of State-Owned Enterprise Investors in International Investment Agreements?

Abstract

This article engages with main concerns of SOE investments by focusing on how international investment law protects SOEs from discrimination. The article observes that SOE investors are in principle entitled to NDT under IIAs, but the extent of NDT is subject to various general and specific restrictions and exceptions. The article stands in the position that under the new generation IIAs, the NDT rules are sufficient to protect SOE investors while addressing the main concerns of the host States. Nevertheless, a further clarification of the relevant terms would help to strike a better balance between the protection and the regulation of SOE investments.

Keywords: Non-discrimination treatment; State-owned enterprise; international investment agreement; competitive neutrality; national security

JEL Classification: K33