International Journal For Multidisciplinary Research

E-ISSN: 2582-2160     Impact Factor: 9.24

A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 8, Issue 4 (July-August 2026) Submit your research before last 3 days of August to publish your research paper in the issue of July-August.

Laws governing Investor Protection vis-a-vis state protection in international law- critical analysis on U.S, India, Australia and E.U

Author(s) Ms. Jahnvi Pandey, Prof. Dr. Lakshmi Priya Vinjamuri
Country India
Abstract International investment law seeks to balance two competing interests: the protection of foreign investors and the preservation of the sovereign regulatory autonomy of host States. This tension has intensified through the rise of Bilateral Investment Treaties (BITs), Investor-State Dispute Settlement (ISDS), and the growing scrutiny of State measures affecting public welfare, environmental protection, public health, and national security. While traditional investment treaties strongly favored investors through standards such as Fair and Equitable Treatment (FET), protection against expropriation, Most-Favored-Nation (MFN) treatment, and access to international arbitration, recent treaty practice increasingly recognizes the State’s right to regulate in the public interest.
This paper critically compares the approaches of the United States, India, Australia, and the European Union toward balancing investor rights and State sovereignty. The paper argues that while the United States continues to support a relatively investor-friendly model, India has moved strongly toward protecting State autonomy after adverse arbitral experiences. Australia adopts a middle path with selective support for ISDS, whereas the European Union is developing a reformed framework centered on investment courts and stronger public policy carve-outs. These differences reveal an evolving global investment regime increasingly shaped by public interest considerations, sustainable development, and regulatory flexibility
Keywords Investor protection, Foreign Direct Investment , Treaty
Published In Volume 8, Issue 3, May-June 2026
Published On 2026-06-04

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