1887

OECD Working Papers on International Investment

Selected studies on international investment and investment policy prepared for use within the OECD. They address such issues as investment agreements, dispute settlement, fair and equitable treatment, most favored nation treatment, and corruption.

English

Foreign State Immunity and Foreign Government Controlled Investors

Discussions at the “Freedom of Investment” Roundtables, hosted by the OECD Investment Committee, have stressed that increased investments by foreign State-controlled investors can bring significant benefits to home and host societies, but have also noted that they can raise concerns. This paper examines two principal issues concerning foreign State-controlled investors: whether the doctrine of foreign state immunity may make it difficult for private parties to pursue legitimate claims against them and whether that doctrine creates regulatory enforcement gaps for host countries. Although the restrictive approach to immunity is now widely recognised, important issues, such as whether the financial investment activities of a sovereign wealth fund are commercial or sovereign acts, remain uncertain. In the area of regulation, the paper analyses state policies in the area of tax, competition law and criminal law, and notes key factors that may influence immunity in such cases.

English

Keywords: foreign sovereign immunity, competition law, state immunity, antitrust, sovereign wealth funds, central banks, regulation, taxation, international investment law, state-owned enterprises, foreign state immunity, state-controlled investors, foreign government controlled investors
JEL: F23: International Economics / International Factor Movements and International Business / Multinational Firms; International Business; G28: Financial Economics / Financial Institutions and Services / Financial Institutions and Services: Government Policy and Regulation; K34: Law and Economics / Other Substantive Areas of Law / Tax Law; K33: Law and Economics / Other Substantive Areas of Law / International Law; F21: International Economics / International Factor Movements and International Business / International Investment; Long-term Capital Movements; K21: Law and Economics / Regulation and Business Law / Antitrust Law; H82: Public Economics / Miscellaneous Issues / Governmental Property
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error