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Monday, February 25, 2013

Whose Law Is Bigger?

Case Study 6 Whose Law is Bigger?
1. If the EU law is bigger, the MNEs lose billions of euros. If the EU law is
utility(prenominal), the disposals (and ultimately the tax behaveers) in the boniface countries
must pay. Which law should come first?
The EU laws impart tend to protect the entire EU community, and thus is expected
to represent the perceived good of all its members. On the opposite hand, a BIT
between two signatories is also binding and should not easily be dismissed,
particularly if it was signed and exercised prior to EU membership. The article
presents evidence that in the above fibre, EU law is secondary of BIT and local anesthetic
laws.
In 2008, a Dutch sugar lodge was awarded 25 million Euros against the Czech
Republic, based on a be BIT contract from the 1990s. EU exclusions
laws were excluded in the arguments, triggering the SU Commission to pay a
closer attention to other ongoing proceedings and intervene where possible in
the interest of the EU.
2. From and institution-based view, explain why the MNEs in this case filed
through arbitration and not courts in the host countries.
Institutions emergency arbitration as a form of resolution precisely because they were
designed to be impartial to the interests of the affected country.

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Should the case be
filed in the host country, one can only assume that the courts will have the interest
of its nation, where losses can amount to millions of euros (borne by the
government and taxpayers alike) and arguably to the wider EU community so that
it may be seen as a nation with a respectable discriminatory system and an EU team
player.
3. As a foreign investor, do you want to support BITs and arbitration or rely on
local court systems?
It would seem from the evidence presented in the article that the cause supports
the greater interest of foreign investors. Since the BIT protects the interests of the
foreign investor and the host country, it seems obvious that any dispute would be
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