The impacts of fair & equitable treatment and indirect Expropriation provisions in Ethiopian bit’s on regulatory power Of Ethiopia

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.