National Treatment In Ethiopian Bits In Light Of Domestic Policies Targeting Disadvantaged Groups.

Abstract

The purpose of this research is examining the Ethiopia’s Bilateral Investment Treaties particularly emphasizing on Standards of National Treatment and Its on Implications disadvantaged groups in Ethiopia (women, children, socially, economically, culturally deprived sections, disabled, minorities) This study fully employed doctrinal type and accordingly, primary and secondary sources, mainly legal documents, Bilateral Investment treaties including domestic laws are analyzed in detail. For this research, certain Ethio-BITs were purposively selected. Accordingly, Ethio-Austria, Kuwait, Iran and kingdom of Sweden BITs were extensively analyzed in this paper. As the result of the study, national treatment in these BITs, were found generally crafted and /or vague which could have a far reaching implications on domestic public policies of Ethiopia in general and policies targeting disadvantaged groups in particular.. Based on the analyses conducted, Ethio-BITs failed to provide policy flexibility room so as to allow Ethiopian government to act domestically for public policy justification. As a result of this, the finding has shown that, the Ethio-BITs has not consistent with domestic investment laws, since currently Ethiopia has retained larger regulatory power in investment, in effect the generality of NT clauses might eventually shorten, the hand of the government to assist the disadvantaged groups. Therefore, depending on the finding of the study, this paper recommends that, to strike the balance of interests, mainly Ethiopian governments need for public policy flexibility and the need for protection of foreign investment, the Ethiopian government should re-think towards the making of BITs to become consistent with domestic and international laws by avoiding vague and general formulation of Ethio-BITs NT clauses.