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Publications of Gatina Dilyara Rustemovna
International Law, 2023-4
Gatina D.R. - Prudential exceptions in international trade and investment agreements. Problems of interpretation and enforcement pp. 49-58

DOI:
10.25136/2644-5514.2023.4.68996

Abstract: This article is devoted to the problems of interpretation of “prudential exception” clauses in international trade and investment agreements. The author examines in what cases the relevant international norms can be applied by states in international disputes, as well as in what cases states can avoid international responsibility if the national measures aimed at preventing financial crisis led to violation of their commitments in the field of trade liberalization and protection of foreign investments. The purpose of the article is to study the scope of rights granted to states by such rules in terms of taking measures aimed at protecting consumers of financial services, ensuring the integrity and stability of the financial system, as well as identifying restrictions on the abuse of such rights. The author makes distinction between “measures taken for prudential reasons” and “prudential measures” and determined procedural and material terms for the application of such exceptions. Author also made recommendations on how to reform the prudential exceptions contained in the Treaty on the Eurasian Economic Union. The author proposes to improve the procedure of considering investment prudential disputes, by transferring the consideration of such disputes to a special commission, the members of which should be representatives of bodies authorized to introduce prudential measures, both from the state from which the investor originates, and from the state in whose territory the investments are made.
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