Tag Archive | "foreign direct investment"

DU’s Foreign Direct Investment Moot Team Travels to Argentina To Compete

Photo Credit: The Himalayan Times

Photo Credit: The Himalayan Times

The Foreign Direct Investment (“FDI”) International Arbitration Moot competition this year was in Buenos Aires, Argentina at the stunning Facultad de Derecho at the Universidad de Buenos Aries. Four students from the University of Denver Sturm College of Law (“SCOL”) competed in this event as one team.

The FDI Moot competition was created in 2008 with a specific focus on investor-state disputes that “involve not only vast sums, but also a panoply of rights, duties, and shifting objectives at the juncture of national and international law and policy.” The FDI Moot is an arbitration for resolving a fictional international investor-state dispute. It is a complicated and intricate field of law—I assure you. Investor-state dispute settlement (“ISDS”) is fast becoming a widely-known mechanism (even in the public sphere, in light of the controversial Trans-Pacific Partnership Agreement) for resolving disputes between a foreign investor and a sovereign state. In fact, ISDS is the theme of the upcoming Denver Journal of International Law and Policy volume 45.2.

The SCOL team began its journey in adjunct Professor Todd Well’s International Investment Arbitration course in Spring 2016. While waiting for the official problem to be released, the class scratched the surface of this interesting world of ISDS arising from Bilateral and Multilateral Treaty breaches. In the months following the official release of the problem in March 2016, the SCOL team was selected, and the real challenge began. First, the team had to organize research, topics, ideas, and concepts and create two Memorandums—one for the Claimant and one for the Respondent—in the fictional dispute between Peter Explosive, an arms producer, and the Republic of Oceania. The Memorandums were 16,000 words maximum, which we quickly learned required serious condensing skills. Then, the oral advocacy work began until October 27th, when the team left the U.S.A. to compete.

Three of the four SCOL team members attended the FDI Pre-Moot competition in Sao Paulo, Brazil from October 28th-30th, and all four attended the FDI competition in Buenos Aries, Argentina from November 3rd-6th. The Pre-Moot competition was held at the beautiful Headquarter Office of TozziniFreire Advogados. We were welcomed with both hospitality from TozziniFreire’s brilliant attorneys, and fierce competition from the learned opposing counsel. We met people from all over the world who participated in the Pre-Moot. We saw our new friends again in Buenos Aries for the Global Orals. In BA, 57 teams from 31 countries participated in this international competition. The Paris Bar School won at UBA, and Harvard Law School came in 2nd. The Universitas Gadjah Mada, Faculty of Law was the highest ranked (written & oral) team. As for team SCOL, we exceeded our expectations, surpassed personal goals, and met established practitioners and scholars in this growing field.

This short article cannot encompass every emotion, triumph, breakdown, and vast improvement that each team member felt at different points of this six-month-long effort. But, I can tell you this experience, which tested the limits of each team-member’s sanity, was well-worth it.

Ashley Lloyd is a 3l at the University of Denver Sturm College of Law, and the Business Editor with DJILP. She participated in the Foreign Direct Investment International Arbitration Moot competition this year in Buenos Aires, Argentina.

Posted in 1TVFA Posts, 2Featured Articles, Ashley LloydComments (0)

wind farm

Aligning International Trade with Sustainable Development

The New York Times Editorial Board recently published an article explaining the need for greater transparency and stricter environmental regulations in trade agreements. The Times missed the opportunity to explain the history of international trade and investment agreements and their tenuous relationship to sustainable development.

With globalization has come greater intergovernmental cooperation, increased trade, and a widening global middle class. However, globalization has also created greater environmental degradation, increased emissions of greenhouse gases, and the exploitation of labor in developing countries. Given the positive and negative consequences associated with globalization, governments and non-governmental organizations have acknowledged the need to align global trade with sustainable development. Recent bilateral investment treaties and model investment treaties have acknowledged sustainable development as a primary objective. Yet the trend towards large multilateral trade agreements has cast doubt on whether sustainable development will remain a priority.

wind farm

Meeting the world’s rising energy demand through sustainable means will require strategic global investment (UN)

Bilateral investment treaties proliferated during the 1970s through 1990s. Developing nations entered into these treaties under the theory known as the Washington Consensus: that allowing foreign investment and lowering trade barriers would ultimately lead to economic growth, raise quality of life, and reduce poverty. Developing nations became wary of this logic once the perils of a free-market became apparent and investors pulled out of regions following a rise in wages. These countries have begun incorporating greater protections on human rights and the environment in addition to acknowledging the right of the State to legislate in the best interest of the public.

There is some doubt as to the efficacy of bilateral investment treaties for attracting investment. There is scant data showing that they increase investment, and little that they do to enforce obligations. The Trans-Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership (TTIP) illustrate the trend towards homogenizing trade regulation through multilateral agreements. While this is generally positive for international trade, concerns remain.

The TPP has been negotiated in secret, and what has leaked has caused concern for many observers. It seems that a predominant goal is to lower trade barriers while protecting the interests of large companies. Investor protection provisions demonstrate how companies may challenge legitimate regulations made for environmental or ecological concerns. Additionally, while environment and human rights have been addressed in negotiations, those issues have not been a priority and there is little to suggest that they will get the robust enforcement needed.

For sustainable development to remain a priority in international trade, there must be a concerted effort to weave the principles of sustainability into the purpose of multilateral trade agreements. However, this is not sufficient to ensure sustainable development will continue. Local governments must hold businesses accountable to their communities and resist a race to the bottom. Most importantly, businesses must commit to sustainable development in practice and not simply pay it lip service. Such action will result in a mutually beneficial relationship between businesses and the communities in which they operate.

 

Alex Milgroom is a 3L at the University of Denver and the Online Editor-in-Chief of the Denver Journal of International Law and Policy

***

This article is based on an academic paper by the author available here.

 

Posted in 1TVFA Posts, 2Featured Articles, Alex Milgroom, DJILP StaffComments (0)


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