(Direct and Indirect) Expropriation and the Rule of Law

Abstract The standard of protection against unlawful expropriation has been referenced in multiple iterations of fundamental/human rights standards on the national and international levels, as well as within international investment agreements. This chapter analyses to what extent the standard under examination reflects the concept of the rule of law. It addresses how the conditions that international investment treaties impose for a (direct or indirect) expropriation to be lawful—public purpose, non-discrimination, due process, and compensation—reflect elements related to the concept of rule of law. Furthermore, the chapter discusses how recent investment treaties and arbitral practice have implemented a rule-of-law-inspired concretization of the scope of indirect expropriation.