Transfer of funds in China‐US BIT negotiations: comparing the Articles of Agreement of the IMF
Journal of International Trade Law and Policy
ISSN: 1477-0024
Article publication date: 23 March 2012
Abstract
Purpose
The purpose of this paper is to explore discrepancies between transfer provisions in the US model BIT, employed as a working text in the ongoing China‐USA BIT negotiations, and relevant Articles of the Agreement of the IMF, to which both China and the USA are signatories, with a view to advising on China's possible strategies for negotiation.
Design/methodology/approach
The approach taken is doctrinal and comparative analysis and treaty interpretation of the US model BIT, the Articles of the Agreement of the IMF, the Chinese model BIT and some earlier versions of these instruments.
Findings
A detailed analysis of several major discrepancies between these instruments finds that a differentiated treatment of capital transfers and current transfers is desirable and, in respect of current transfers, a properly formulated “temporary derogation” exception should be adopted.
Originality/value
The paper conducts a unique substantial comparison of two most influential instruments governing transfer of funds in international investments. It reveals the common rationale shared by the transfer provisions under both instruments.
Keywords
Citation
Liu, Q. and Ren, X. (2012), "Transfer of funds in China‐US BIT negotiations: comparing the Articles of Agreement of the IMF", Journal of International Trade Law and Policy, Vol. 11 No. 1, pp. 6-26. https://doi.org/10.1108/14770021211210669
Publisher
:Emerald Group Publishing Limited
Copyright © 2012, Emerald Group Publishing Limited