Introduction

The boundaries of expropriation in international law are controversial.[1] In Ethyl, Metalclad and Methanex NAFTA investors claimed that government regulation had deprived them of the substantial benefit of their investments resulting in significant economic losses-losses so significant that the regulations in question were tantamount to expropriation. Deprivation, however, is not the sole litmus test of expropriation. Under international law, not all deprivations of property are expropriatory. Under a state's police powers, it may take property and property owners may suffer ...