CAUSATION IN INTERNATIONAL INVESTMENT LAW: PUTTING ARTICLE 23.2 OF THE INDIA MODEL BIT INTO CONTEXT

Abstract

Causation has received little attention in international investment law even though it is an integral element of liability in investment disputes. This article uses the two dimensions of the causal inquiry, factual and legal causation as a framework for analysis, and explores how investment treaties and tribunals have addressed causation. Article 23.2 of the new India Model Bilateral Investment Treaty, which exhibits a novel approach to causation in treaty practice, must be seen in this context. As relationships among States and private investors grow more complex, other investment treaties may follow and set out specific standards of causation.