Bilateral Investment Treaties and Free Trade Agreements with BIT-Like provisions encroach on the sovereignty of states, especially of developing countries, in that they can challenge internal public policies.
The above-mentioned articles show that the OECD Draft further developed the concept of indirect expropriation by explicit use of the world "indirectly" and considered indirect expropriations on a par with direct takings.
Organisation for Economic Co-operation and Development.
Inthe Polish Government issued a ministerial decree authorizing a delegate of the Polish Government to take control of the activities of the nitrate factory and possession of the movable property, licenses, and patents Richard A. These costs, at least under certain circumstances, should be borne by a society as a whole.
Various mineral and oil industry corporations warned the South African government that the measure could violate the BITs executed by and between UK and Belgium and Luxembourg Controversy of the United Kingdom and the Kingdom of the Two Sicilies : Inthe Kingdom of the Two Sicilies granted a monopoly of extraction and exportation of Sicilian sulphur to a single company and to the exclusion of all other companies.
Legal scholars as well as several international arbitrators have pointed out that the clauses contained in BITs or the foreign investment chapters of FTAs are too wide and vague which leaves the interpretation of the scope of protection to the discretion of arbitrators 7.