Discriminatory Application of Competition Law and International Investment Agreements

Dai Tamada

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: The relationship between competition law and investment law has been a topic of recent discussion. The former aims to establish fair competition conditions in the markets. The latter seeks to protect foreign investments in the State. The broader the regulation of international investment agreements (IIAs), the more visible is the tension between the two laws. For example, the monopoly of a sector by the host State's domestic companies can be regarded as a barrier for foreign investors' entry into the market. If a host State interprets and applies its domestic laws in favor of its domestic companies, then consequently, to the foreign investors' disadvantage, there is discrimination based on nationality. This should be regarded as a breach of national treatment as stipulated in the IIAs. The relationship between the two laws should be analyzed and discussed in greater detail in the future.

Pages: 21 pages
Date: 2015-11
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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:15125

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