INTERPRETATION OF UMBRELLA CLAUSES IN THE ICSID SYSTEM

The study supports that States are bound to their international obligations. Therefore, to preserve both the sanctity of contracts and those international standards that protect investments, a breach of contract can be transformed into a BIT violation in a particular case, thus observed in the light of international law, notwithstanding a forum selection clause. The study is structured in four parts: (I) a general approach to investment treaties, umbrella clauses, and the ICSID system; (II) the study of ICSID landmark cases concerning the interpretation of umbrella clauses; (III) the analysis of breaches of contract transformed into a BIT violation, together with an overview on the Occidental v. Ecuador case; and, (IV) conclusions.