Abstract
While the need for FD! has necessitated a tremendous increase in Bilateral Investment Treaties all over the world, there are different opinions about the desirability for Multilateral Investment Treaty. While the “globalisation school” advocates for the conclusion of MAI, the “internalisation school” is against it advocating policy autonomy for the sovereign countries and pointing to development needs of the developing countries. Earlier these agruments in investment area were put forward in relation to issues like expropriation, stability of contract, compensation, etc. which have now got settled in international law. But there are new issues like right to market access to foreign investors, extent of regulatory powers of host country, performance requirements and investment incentives and code of conduct for multinational corporations which are yet to be settled and will be important issues in any negotiation for MAI. The paper studies the trend of international law on foreign investment as it is growingfrom customary international law developed by bilateral investment treaties and various legal writings into a more legislative law by various regional investment agreements and endeavours for a Multilateral Investment Treaty now under WTO. Various suggestions regarding a prospective MAI under the WTO have been discussed.
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