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Regulation of expropriation and access to courts and arbitration

In line with international practices in investment protection treaties, the Investment Act of 2010 (available here) offers additional guarantees against expropriation (section 7), repatriation of capital (section 10), and access to courts and arbitration (section 11). The provision against expropriation takes inspiration in the disciplines of bilateral investment treaties and incorporates the main elements of those provisions, albeit with a slightly nuanced language. The law states that for an expropriation to take place, it must respond to a national interest or public purpose, be the least burdensome alternative to achieve that goal, be non-discriminatory, in accordance to due process of law, and provide for a “fair and adequate compensation”. The law also offers foreign investors the ability to resort to international arbitration in case of a dispute with the government.

 

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