Abstract:
This thesis examined the impacts of “FET” and “Indirect Expropriation” provisions in Ethiopian
BITs on the regulatory power of Ethiopia. The researcher used doctrinal and non-doctrinal legal
research method. Doctrinal legal research is employed because analysis of statutory provisions
and International arbitral tribunal cases were applied by way of reasoning. Non Doctrinal legal
research is also employed to permit analyzing these provisions from different angles or sciences.
And the paper argues that, the “FET” and Indirect expropriation clauses included in most
Ethiopian BIT’s are broadly expressed, in a way it will impair the regulatory power of Ethiopian
state. These broadly expressed substantive provisions in Ethiopia makes the expanse of investment
protections very broad and limit the kind of measures that can be imposed on foreign investments
by causing either regulatory chill on state or the investors can enforce the provisions against the
State through ISDS system at international tribunals. The study will have the objective of limiting
this access road by showing policy makers and treaty drafters as to how to secure the interest of
the host state Ethiopia and foreign investors. It is apparent that these treatment standards,
including MFN treatment Standard which multilateralize investment treaties in Ethiopia need to
be revised and redrafted to reduce uncertainty and over-protection arising from their broadly
worded provisions. Finally the researcher recommended by proposing other countries BITs best
drafting practices for future Ethiopia’s (Model) BITs and also provided best options how
Ethiopia’s old BITs will be reformed.
