Piercing the ‘National’ Veil of State-Backed Investors in ICSID Arbitration : Beyond Broches Test and ARSIWA

Nisugi, Kento

Piercing the ‘National’ Veil of State-Backed Investors in ICSID Arbitration : Beyond Broches Test and ARSIWA

Nisugi, Kento

OSIPP Discussion Paper, 2023, DP-2023-E-003, 1-27

Number of Access:245（2025-09-03 11:38 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/11094/92834

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Title	Piercing the ‘National’ Veil of State-Backed Investors in ICSID Arbitration : Beyond Broches Test and ARSIWA
Creator	NRID 1000030824015 1000030824015 researchmap permalink kenton kenton CreatorName Nisugi, Kento
Subject	International investment law
	Investor-State arbitration
	ICSID
	State-backed investors
	Broches test
	ARSIWA
	Attribution
	Piercing the veil
Abstract	Amidst the rising influence of State-owned enterprises and sovereign wealth funds, the eligibility of State-backed investors to claim standing as a claimant before an ICSID tribunal emerges as a significant point of contention. The established ‘Broches test’ suggests that State-ownership per se does not disqualify an entity from being a ‘national’ under Article 25 of the ICSID Convention. However, the ambiguities inherent in its content and legal authority have yielded varied interpretations. A newer perspective suggests relying on attribution standards reflected in the Articles on Responsibility of States for Internationally Wrongful Act (ARSIWA) for guidance. This article examines critically these prevalent approaches and obstacles to the transplantation of ARSIWA’s attribution rules to this specific context. Instead, it proposes a method for piercing the ‘national’ veil of State-backed investors in accordance with the general principle of law of abuse of legal personality and process. This proposed framework strikes a proper balance between safeguarding the integrity of the ICSID system and ensuring State-backed investors’ access to ICSID. Moreover, this article paves the way for future tribunals by drawing inspiration from the parallel practice of the European Court of Human Rights.
Publisher	Osaka School of International Public Policy, Osaka University
Source Title	OSIPP Discussion Paper
Volume (Issue)	DP-2023-E-003
Page	1-27
Date of Issued	2023-10-24
Language	English
Handle URL	https://hdl.handle.net/11094/92834
Relation.references	URI http://www.osipp.osaka-u.ac.jp/archives/DP/2023/DP2023E003.pdf
Access Rights	metadata only access
Category	ディスカッション／ワーキング・ペーパー DP/WP
Category	OSIPP Discussion Paper

Resource Type	technical report
Local Type	DP/WP
DCMI Type	Text
DCTERMS.bibliographicCitation	OSIPP Discussion Paper. 2023, DP-2023-E-003, p. 1-27
DC.title	Piercing the ‘National’ Veil of State-Backed Investors in ICSID Arbitration : Beyond Broches Test and ARSIWA
DC.creator	Nisugi, Kento
DC.publisher	Osaka School of International Public Policy, Osaka University
DC.language' scheme='DCTERMS.RFC1766	English
DC.type' scheme='DCTERMS.DCMIType	Text
DCTERMS.issued' scheme='DCTERMS.W3CDTF	2023-10-24
DC.relation' scheme='DCTERMS.URI	http://www.osipp.osaka-u.ac.jp/archives/DP/2023/DP2023E003.pdf
DC.subject	International investment law
	Investor-State arbitration
	ICSID
	State-backed investors
	Broches test
	ARSIWA
	Attribution
	Piercing the veil
DCTERMS.abstract	Amidst the rising influence of State-owned enterprises and sovereign wealth funds, the eligibility of State-backed investors to claim standing as a claimant before an ICSID tribunal emerges as a significant point of contention. The established ‘Broches test’ suggests that State-ownership per se does not disqualify an entity from being a ‘national’ under Article 25 of the ICSID Convention. However, the ambiguities inherent in its content and legal authority have yielded varied interpretations. A newer perspective suggests relying on attribution standards reflected in the Articles on Responsibility of States for Internationally Wrongful Act (ARSIWA) for guidance. This article examines critically these prevalent approaches and obstacles to the transplantation of ARSIWA’s attribution rules to this specific context. Instead, it proposes a method for piercing the ‘national’ veil of State-backed investors in accordance with the general principle of law of abuse of legal personality and process. This proposed framework strikes a proper balance between safeguarding the integrity of the ICSID system and ensuring State-backed investors’ access to ICSID. Moreover, this article paves the way for future tribunals by drawing inspiration from the parallel practice of the European Court of Human Rights.
DC.format	92834
citation_title	Piercing the ‘National’ Veil of State-Backed Investors in ICSID Arbitration : Beyond Broches Test and ARSIWA
citation_author	Nisugi, Kento
citation_publisher	Osaka School of International Public Policy, Osaka University
citation_language	English
citation_date	2023-10-24
citation_journal_title	OSIPP Discussion Paper
citation_volume	DP-2023-E-003
citation_firstpage	1
citation_lastpage	27
citation_public_url	https://hdl.handle.net/11094/92834
citation_abstract_html_url	http://www.osipp.osaka-u.ac.jp/archives/DP/2023/DP2023E003.pdf

Piercing the ‘National’ Veil of State-Backed Investors in ICSID Arbitration : Beyond Broches Test and ARSIWA

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