The Research Of Umbrella Clause Scope Of Application

Umbrella Clause first appeared in the area of investment since the last century. The Umbrella Clause has been applied in the area for more than half a century. During this process,it merged many issues. But these issues can not be the block of Umbrella Clause to be playing a more and more important role in international investment.To develop the economy of their own country, the Bilateral investment treaty has been signed during many countries. Most of the countries do not has a clear cognition of Umbrella Clause. So many investment disputes have been submitted to the International arbitration institutions by using the Umbrella Clause. The application of Umbrella Clause is in a disorder because that there is no a standard of Interpretation of Umbrella Clause. The arbitral tribunal has not followed the precedent, even has come out a completely different decisions. And this issue has rised people’s attention.People begun to research the application Umbrella Clause which was the most controversy issue in practice after 2000. The issue has not a final conclusion until now. How to interpret Umbrella Clause is the key to solve the issue. Different people have different views about this issue. In this article,many case will be used to analyse Umbrella Clause.The author also will give his suggestion.Apart from the introduction and the conclusion, this paper is divided into four chapters.Chapter one focuses on the background knowledge of the Umbrella Clause, the early prototype and later evolution in a order of time. It reveals the early formation of the umbrella clause is to resolve disputes between foreign investors and host countries. And prepare for the purpose of clause for the following scope of dispute background Reference.Chapter two using a large number of case studies, illustrates the theory of restrictive interpretation and the theory of expansion on the Umbrella Clause explaining theoretical differences, analyzes the nature and causes of differences, to explain the theory’s development and make predictions.Chapter three, in a procedural point, illustrating the Umbrella Clause in the interaction between exclusive jurisdiction clauses and Most-favoured-nation clause concerning the application.Chapter four focus on the present situation of Umbrella Clause in our country and give practical advice for the development of umbrella clauses in future investment.