Батжаргалын Ариунзаяа : The Problematic Issue of Stabilization of the Investment Law (Comparative Research)

Бүтээлийн нэр

The Problematic Issue of Stabilization of the Investment Law (Comparative Research)

Зохиогч

Батжаргалын Ариунзаяа

Хэлбэр

Эрдэм шинжилгээний өгүүлэл

Салбар

Үндсэн хуулийн эрх зүй, Олон Улсын хувийн эрх зүй, Хөрөнгө оруулалт

Бүтээлийн товч

One of the results of "Building a stable macroeconomic environment" established in “Vision - 2050”, the long-term development policy of Mongolia, is to create conditions to support foreign investment. However, 110 amendments were made to 64 clauses of the Law of Mongolia on Foreign Investment (1993), while 40 amendments were made to 27 clauses of the Law of Mongolia on Investment (2013). Many changes have been made to the main law establishing the foreign investment policy and created instability, which has become a factor of "repelling" rather than "attracting" foreign investors. Mongolia once tried to stabilize the Law of Mongolia on Investment, however, the Constitutional Court of Mongolia (Tsets) ruled that it was not in conformity with the Constitution of Mongolia and annulled the law.

The stabilization clause is in the interest of the foreign investor as a risk mitigation tool and in the host state's interest as a legal tool to attract foreign investors. Hence, developing countries that are open to foreign investment are stabilizing their foreign investment laws and using them as legal tools to support foreign investment. With this research paper, whether the Law of Mongolia on Investment should be stabilized in the future, and which type of stabilization clause would be in compliance with the Constitution of Mongolia? will be studied and suggestions will be made. It also compares how developing countries stabilize their investment laws. This research paper was written using analysis, summarization, and the comparative method.

Түлхүүр үг

foreign investment, stabilization clause, non-application clause, risk mitigation, and attracting foreign direct investment

Бичигдсэн огноо

2023-04-23

Хуудсын тоо

Хэл

Англи

Бүтээл

Бүрэн эхээр нь үзэх

Байршуулсан огноо

2024-12-14

Товч мэдээлэл үзсэн

134

Бүрэн эхээр нь үзсэн

Эшлэлийн тоо

Санал болгож буй эшлэлийн загвар

Б.Ариунзаяа “The Problematic Issue of Stabilization of the Investment Law (Comparative Research)” (2023), ... дахь/дэх тал. Legaldata-аас унших боломжтой: https://legaldata.mn/b/2211

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Эшлэлүүд

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Ibid.

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Intangibility clauses are intended to ensure that the investment contract is not affected from the Host state measures, unless the parties have mutually agreed to it. Intangibility clause expressly allows the Host state to change the law or regulations. It is more flexible subtype of classic stabilization clause. However, they are not common in investment contracts and domestic legislation.

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Jola Gjuzi, p.42.

The hybrid clause require the state to restore the investor to the same position it had prior to changes in law, and the contract states explicitly that exemptions in law are one way of doing this.

According to the study of some researchers, choice-of-law clauses may be regarded as stabilization clauses given that this clause releases the foreign investor from the influence of domestic law by choosing another body of law as its governing law.

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Law of Mongolia on Foreign Investment (1993). https://legalinfo.mn/mn/detail/212

Law of Mongolia on Investment (2013). https://legalinfo.mn/mn/detail/9491

Ibid.

Rule No. 02 of the Constitutional Court dated 13.02.2015. https://old.legalinfo.mn/law/details/10903?lawid=10903

The Constitution of Mongolia. https://legalinfo.mn/mn/detail/367

Ibid.

Kyla Tienhaara (2008) Unilateral Commitments to Investment Protection: Does the Promise of Stability Restrict Environmental Policy Development? Yearbook of International Law, p.57. https://regnet.anu.edu.au/sites/default/files/publications/attachments/2015-05/Tienhaara-2008-Unilateral_Commitments_0.pdf (“Kyla Tienhaara”)

Ibid.

Kyla Tienhaara, p.150.

UNCTAD Policy, p.5.

Kosovo, Law on Foreign Investment (2014), Article 6 “Stability of Investment Regime”. https://investmentpolicy.unctad.org/investment-laws/laws/211/kosovo-law-on-foreign-investment

Ibid.

Azerbaijan, Law on the Protection of Foreign Investments (1992) Article 10 “Guarantees against changes in legislation”. https://investmentpolicy.unctad.org/investment-laws/laws/9/azerbaijan-foreign-investments-law

Uzbekistan, The Law On Investments and Investment Activity (2019), Article 64 ‘Application of the provisions of this Law to previously made investments’ https://investmentpolicy.unctad.org/investment-laws/laws/328/uzbekistan-the-law-on-investments-and-investment-activity

Georgia, Law on the Investment Activity Promotion and Guarantees (2019), Article 15. Guarantees during amendment of legislation. https://investmentpolicy.unctad.org/investment-laws/laws/75/georgia-investment-law

Ibid.

Tax rate stabilization, common legal guarantee of investment, and rights of obligations of investor etc.

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