The Invocation of State of Necessity Defense to justify Covid-related Measures Before International Centre for Settlement of Investment Dispute (ICSID)
الملخص
The Coronavirus Disease 2019 (Covid-19) pandemic has forced countries to adopt a number of regulatory defensive measures, which, in turn, could negatively impact foreign investors. Therefore, many conceive that foreign investors might recourse to ICSID to initiate investor-State claims against host states under different bilateral investment treaties (hereinafter BIT). The Covid-19 pandemic has badly affected Kuwait, forcing it to adopt a national lockdown to slow down the transmission of the disease.
The lockdown has remained in place for several weeks causing a number of layoff of employees, and companies to declared bankrupt. In this context, this article argues that if UCSID claims are initiated against Kuwait, Kuwait will be able to defend its Covid-19- related measures under the BIT defenses, particularly it can invoke the necessity defense through non-precluded measures provision (hereinafter NPM).
المراجع
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9. The final adopted version of its text looked as follows,
1. Necessity may not be invoked by a State as a ground for precluding the wrongfulness of an act not in
10. conformity with an international obligation of that State unless the act:
(a) Is the only way for the State to safeguard an essential interest against a grave and imminent peril; and
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11. or of the international community as a whole.
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66. Philip Morris Brands Sàrl, Philip Morris Products S.A. and Abal Hermanos S.A. v. Oriental Republic of Uruguay, ICSID Case No. ARB/10/7, Award (July 8, 2016), ¶¶ 306, 420, 434.
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70. For example, the Belgium-Luxembourg Economic Union-China BIT includes at Art. 4(2) a national and essential security clause that relates only to the provisions on expropriation, and the Japan-China BIT contains in its Protocol a national and essential security clause that relates only to the provisions on non-discrimination.
71. Energy Charter Treaty, Art. 24(1) (“This Article shall not apply to Articles 12, 13 and 29”). See
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73. International Covenant on Economic, Social and Cultural Rights, art 12.2(c); International Health Regulations 2005. Article 15 of the Constitution of Kuwait 1962 provides that ‘The State is responsible for the public health and the means to prevent pandemics”.