The Interpretation of Investment Treaties

Abstract This chapter addresses issues that arise in the interpretation of investment treaties and provides guidance on treaty interpretation. The interpretation of a treaty must take into account the ‘context’ of the treaty terms and the treaty’s object and purpose. It must also take into account subsequent agreement between the parties regarding the interpretation of the treaty as well as any subsequent practice in the application of the treaty. The chapter discusses the basic rules of interpretation found in Articles 31, 32, and 33 of the Vienna Convention on the Law of Treaties (VCLT) and considers the sources and languages of treaty texts, as well as the use of arbitrations and judicial decisions and scholarly commentary in the interpretation process.