THE INTERPRETATION AND APPLICATION OF AN UMBRELLA CLAUSE IN INTERNTIONAL INVESTMENT LAW

Abstract

An umbrella clause, a substantive clause provided in international investment treaties is a means to elevate a contract claim to a treaty claim and establish international investment arbitration tribunals’ jurisdiction. This article is aimed at examining an interpretation and application of umbrella clauses in investment treaties. Its core issue is what kind of acts of state that can elevate contract claims to treaty claims.

After doing documentary research, it is here suggested that   umbrella clauses can be used to elevate contract claims to treaty claims and establish the jurisdiction of tribunals regardless of the kinds of acts of states.