Umbrella Clauses. A Balanced Approach to Interpretation

The paper explores the role of umbrella clauses in investment contracts, highlighting their increasing prevalence and the challenges they pose in interpretation. It argues against the common perception that these clauses blur the lines between international and municipal law, asserting that a careful interpretation can maintain this distinction. Advocating for a restrictive approach, it suggests that only actions by the host state's government should be considered violations of umbrella clause obligations, aiming to balance the interests of all parties involved.