Waibel: BIT by BIT – The Silent Liberalisation of the Capital Account

Michael Waibel (Univ. of Cambridge - Law) has posted BIT by BIT – The Silent Liberalisation of the Capital Account (in International Investment Law for the 21st Century - Essays in Honour of Christoph Schreuer, C. Binder, U. Kriebaum, A. Reinisch & S. Wittich eds., 2009). Here's the abstract:

The article explores the relationship between free transfer clauses and exchange restrictions. The transfer of funds provision is a common feature of BITs, albeit of limited practical relevance thus far. The free transfer provision is particularly important in difficult economic times, when the host country faces complex policy trade-offs. Financial crises are a good example. No ICSID tribunal seems to have ruled on the merits of a capital transfer provision. This is likely to change over the coming years, in particular following the global financial crisis in 2008.