Interpretation of the Umbrella Clause in Investment Agreements

This paper was prepared by Katia Yannaca-Small, Legal Advisor, Investment Division,Directorate for Financial and Enterprise Affairs, OECD. Thanks are due to CatrionaPaterson, a consultant to the Investment Division, for research input.It has been developed as an input to the Investment Committee’s work aimed at enhancingunderstanding of the "umbrella clause" in international investment agreements and hasbenefited from discussions and a variety of perspectives in the Committee. It was also asubject for discussion at an APEC-UNCTAD Regional Seminar on Investor-State DisputeSettlement in Mexico City on 9-10 October 2006. The paper as a factual survey does notnecessarily reflect the views of the OECD or those of its Member governments. It cannotbe construed as prejudging ongoing or future negotiations or disputes pertaining tointernational investment agreements.