Bilateral investment traties and their incidence on nations sovereignity

Abstract

This paper reviewed the legal and institutional evolution of the relationship between states and foreign direct investment in the past half century, from the previous recurring cases of expropriation and nationalization in the context of the Cold War up to nowadays different context of neo liberal globalization where transnational corporations threaten countries' sovereignty. lt discussed the Bilateral lnvestment Treaties, its nature and the terms they impose to Foreign Direct lnvestment recipient States. 11 also exposed the arbitration systems biases, which rule in favor of corporate interests al the expense of unfair burdens on the finances of developing countries. Once it's demonstrated the illegitimacy of ICSID and other arbitration systems, it concludes the relevance of an audit of these international instruments and the need for a regional dispute system between the South American states and transnational corporate power.