Studien zum Internationalen Investitionsschutzrecht. Luca Schicho. State Entities in International Investment Law. Nomos

Transcription

1 Studien zum Internationalen Investitionsschutzrecht 4 Luca Schicho State Entities in International Investment Law Nomos

2 Studien zum Internationalen Investitionsrecht herausgegeben von Professor Dr. Marc Bungenberg, LL.M., Universität Siegen Professor Dr. Stephan Hobe, LL.M., Universität zu Köln Professor Dr. August Reinisch, LL.M., Universität Wien Professor Dr. Andreas Ziegler, LL.M., Universität Lausanne Band 4

3 Luca Schicho State Entities in International Investment Law Nomos

4 Gefördert aus Mitteln der Österreichischen Forschungsgemeinschaft. Die Deutsche Nationalbibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über abrufbar. ISBN (Nomos Verlag, Baden-Baden) ISBN (facultas.wuv Verlag, Wien) ISBN (Dike Verlag, Zürich/St. Gallen) 1. Auflage 2012 Nomos Verlagsgesellschaft, Baden-Baden Printed in Germany. Alle Rechte, auch die des Nachdrucks von Auszügen, der fotomechanischen Wiedergabe und der Übersetzung, vorbehalten. Gedruckt auf alterungsbeständigem Papier.

5 Table of Contents Table of Contents 9 Table of Abbreviations 13 Chapter I. Introduction 15 Chapter II. State Responsibility and Attribution The importance of the rules of attribution The distinction from violations of the duty to protect The application of the rules of attribution to State entities The ILC ASR as a structural framework The ILC ASR and their preparatory works Recourse to the ILC ASR in investment arbitration case-law Determining attribution under the ILC ASR A question of jurisdiction or merits? 31 A. Mainly merits: the prima facie test 32 B. Mainly jurisdiction: the State entity test 36 C. Conclusions Conclusion 38 Chapter III. Typology and Definition of State Entities The importance of State entities Use of the term State entities 42 A. State entities in the ILC Articles on State Responsibility (2001) 43 B. State entities in the ICSID Convention 44 C. State entities in the United Nations Convention on Jurisdictional Immunities of States and Their Property (2004) 44 D. State entities in other treaties 46 E. State entities in arbitral decisions 48 1) State entities 49 2) Government, governmental or public entities 51 3) State entities in French arbitral decisions 54 4) Conclusions 55 F. State entities in scholarly writings 56 9

6 3. The definition of State entities 58 A. Separate legal personality 59 B. Outside the official structure of the State 59 C. Special relationship with the State 60 D. Distinguishing from other entities Common characteristics of State entities 62 A. Political influence 62 1) Non-commercial considerations in everyday business 63 2) Volatility and change of government 64 3) The exercise of political influence 67 B. Lack of transparency in internal decision making process 68 C. Reluctance to commit to clear objectives 68 D. Aims and objectives: the drive to expand Categories of State entities 70 A. State enterprises 70 B. Regulatory and supervisory agencies 72 C. Infrastructure and development agencies 73 D. Privatization agencies 75 E. Public Private Partnerships 75 F. Sovereign Wealth Funds Conclusion 81 Chapter IV. Art. 4 State organs Introduction 83 A. Background 84 B. Drafting history of Art Requirements of Art A. Organ status 86 1) The concept of overall assessment 87 2) De facto organs: a distraction from the real problems? 89 B. Acting in official capacity 94 1) Attribution ultra vires 97 2) Commercial conduct Jurisprudence in investment arbitration 102 A. Objections raised by respondent States 102 1) Characterization under domestic law 103 2) The relevance of separate legal personality 106 B. Application of the concept of overall assessment Conclusions 116 A. Art. 4 in the process of establishing attribution 116 B. The impact of the assessment of Art. 4 on the overall decision on attribution

7 C. The use Art. 4 for interpreting other attribution provisions 118 Chapter V. Art. 5 Exercise of Governmental Authority Introduction 120 A. Drafting history of Art B. Governmental authority in treaties The requirements of Art A. Empowerment by law 125 B. Exercising elements of governmental authority 127 1) Coercive power 128 2) Vivendi II: coercive and soft power? 131 3) Governmental functions or tasks 133 4) The privatization test: typically commercial vs. typically governmental activities 136 5) The framework test: activities in a governmental framework 138 6) Two sides of the same coin: if there is a market, it is not governmental 142 C. Acting in that capacity exercising that authority Attribution ultra vires Conclusions 146 Chapter VI. Art. 8 Control Introduction 148 A. Drafting history of Art B. The sub-categories under Art ) Instructions 152 2) Terminology: Direction and/or control 153 3) The means of control 153 4) Distinguishing instructions and control 154 C. Terminology problems in distinguishing the sub-categories Requirements for applying Art A. Instructions 158 B. Control 159 1) Effective control in the Nicaragua Case 160 2) Overall control in Tadic 163 3) The position of the ILC in its final draft articles 171 4) Subsequent ICJ jurisprudence 172 5) Criticism of the effective control test 178 6) The relationship between the tests 180 7) The own agenda criterion

8 8) ICJ jurisprudence revisited 185 C. No attribution ultra vires 189 D. Multiple control Possible lower control thresholds in investment arbitration 191 A. Overall control 192 B. A lex specialis of lower thresholds 193 C. Reversed burden of proof Investment arbitration jurisprudence 197 A. Influence based on public law 197 B. Influence based on State ownership 205 C. State ownership in Maffezini v. Spain 209 D. Expected intervention: FW Oil v. Trinidad & Tobago 211 E. Intervention with de iure binding instructions: EDF v. Romania 212 F. Intervention with de facto binding instructions: Lemire v. Ukraine Conclusions 217 A. Overall control 217 B. Lower threshold as lex specialis 218 C. Reversed burden of proof 219 Chapter VII. Other Attribution Provisions Introduction Art. 9 Conduct carried out in absence or default of official authorities Art. 11 Conduct acknowledged and adopted Conclusions 226 Chapter VIII. Conclusions and Outlook The law: the role of the ILC ASR The structure: distinguishing between attribution rules Conclusion 230 List of Sources