TAX "VETO" AS A SPECIAL JURISDICTIONAL AND SUBSTANTIVE ISSUE IN INVESTOR-STATE ARBITRATION: NEED FOR REASSESSMENT?

Abstract

Despite the evolving nature of the global economy and the role of the state from the "nation-states" (Westphalia) into "market-states" with emphasis on privatization of hitherto state activities and competitive markets, which entail more external disciplines on state power especially in the areas of trade, invest- ment, and human rights,1 most governments still viewed taxa- tion as a central element of sovereignty and so are reluctant to accept extensive or heightened international disciplines on their taxing powers.2