Surya P. Subedi, a professor of international law at the University of Leeds and member of the Institute of International Law, is one of the pioneers who takes seriously the conflicting interests of the two main participants in international investment law: foreign investors and host states. His emphasis on reconciling controversies surrounding these competing interests continues to manifest in his latest edition of International Investment Law: Reconciling Policy and Principle. Indeed, the key theme of this acclaimed book is “the challenge and the need to reconcile the law on the protection of foreign investments with other competing principles of international law” (p. v).

Offering a critical introduction to international investment law, this book contains eight chapters with concluding remarks. In contrast to other books on international investment law, this book does not begin by presenting a historical dimension of the field. Instead, its first chapter deals with fundamental changes and new trends in international investment law, especially the attempts to reform investor-state dispute settlement (ISDS) to strike a balance between competing principles of international law. It remains to be seen whether the proposed measures by the investment court system (ICS) will create the discipline and coherence in investment dispute settlement as Professor Subedi expects. In Chapter 2, the book explains how international investment law has evolved. It gives an account of the way in which participants have used different techniques to present their claims and counterclaims to achieve their desired outcome. Chapter 3 comprehensively examines attempts to regulate foreign investments at the international level by ways of binding and non-binding instruments, especially those made under the auspices of international organizations. This chapter also gives weight to private initiatives to regulate foreign investments.

Chapter 4 discusses the customary international law protecting foreign investments. Chapter 5 addresses the protection of foreign investments provided by the backbone of international investment law; namely, the institution of bilateral investment treaties (BITs). Chapter 6 presents the jurisprudence of international courts and tribunals, drawn from their decisions in interpreting and applying both customary international law and BITs. It covers, inter alia, definitions of investment, expropriation, shareholders’ rights, and most-favored-nation treatment (MFNT). It also includes a discussion of the adjudicating bodies’ inclination to favour foreign investors, which serves as a platform for the final chapters. Chapter 7 addresses current issues in international investment law, such as an expansive or creative trend in interpretation, foreign investors’ legitimate expectations, and legitimate regulatory measure. Chapter 8 examines how to address challenges in the field, including a global comprehensive investment treaty, appeal mechanism, international investment court, and revision of relevant instruments. Lastly, the book concludes with observations on the past, present, and future of international investment law, the convergence of views, changes in state practice, and future directions.

Grappling with the core principles and standards of treatment in international investment law as well as the current state of affairs from both theoretical and practical perspectives, this book offers a balanced approach to protecting the values of the main participants in this international legal regime. It gives due regard to the interests of foreign investors, developing countries, developed countries, and others. Certainly, it is one of the introductory books every international law student should read, together with Principles of International Investment Law Footnote ¹ and An Introduction to International Investment Law.Footnote ²