The Brave New World of Foreign Investment in the Wake of Covid-19 Pandemic: Current Situation and Potential Disputes

Document Type : Original Article

Author

University of Ottawa

10.30489/cifj.2021.276883.1030

Abstract

The Covid-19 pandemic might have a negative effect on Foreign Direct Investment (FDI) worldwide. Namely, the pandemic may have a long-lasting impact on policymaking trends in the context of international investment law and international trade. It may accelerate the interventionism, protectionism, and reverse globalization trends already present in the changing landscape of international law. In this paper, the author will further examine the consequences of restricting and tightening foreign investment regimes worldwide. First, the author will analyze whether the Covid-19 pandemic and growing anti-globalization have decreased FDI and whether such decline is likely to continue in the future. Secondly, the author will examine whether implemented policies put the States at risk of facing ISDS claims. History teaches us that times of crisis attract an increased number of investment claims, e.g. Argentina faced about 50-known ISDS cases due to measures undertaken to combat the crisis.

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Articles in Press, Accepted Manuscript
Available Online from 21 May 2021
  • Receive Date: 09 March 2021
  • Revise Date: 16 May 2021
  • Accept Date: 21 May 2021