Introduction

The umbrella clause is a provision in an investment protection treaty that creates an international law obligation between the States that are party to the treaty. In general, a 'plain vanilla' umbrella clause obligation requires a State to 'observe any obligation' it may have entered into with investors having the nationality of another Contracting State, or with respect to the investments of such investors. When determining the proper effect of an umbrella clause, proper care and attention must be given to the particular language used and the structure of the relevant treaty. ...