Policy options

The policy choices with respect to expropriation provisions can be grouped into three main models – a “high protection” model, an “increased predictability” model and a “qualified” model. The high protection model is more or less uniform and can be found in many existing treaties. The “increased predictability” model refers to the clarifications of the type introduced by Canada and the United States in their model BITs in 2004, which give additional guidance as regards indirect expropriation and reaffirm the right to regulate. Finally, there is the “qualified” model, which may feature a variety of limitations and qualifications to the expropriation provision in order to respond to States' particular policy objectives and concerns. The three models are discussed in turn.

Related Subject(s): United Nations