Full protection and security standard under the international investment law: challenges and prospectes to Ethiopia

Abstract

International investment law is dynamic. As treaty practice and jurisprudence in the area constantly develop, global standards are always in the making. Reviewing Ethiopia‟s Bilateral Investment Treaties (BITs) is important to evaluate the standard of FPS obligations under the regime of global investment standards. This research paper briefly evaluates the concept of Full Protection and Security(FPS) standard, under the customary International law and International Investment Agreement in relation to the nature or scope of FPS clause and its interaction with FET provisions contained in BITs. In doing so, this paper evaluates the different rulings of investment tribunals with regard to the scope of application FPS standard. A review of Ethiopian BITs indicate that in almost all of the BITs, the FPS clause is phrased in general terms and leaves leverage to raise competing interpretations and creating a matrix of obligations thereby stretching the country‟s obligations under the respective agreements. This calls for revising the application of FPS and incoherent application of the FPS standard contained in various BITs signed by Ethiopia with the aim to laying down a coherent investment treaty framework.