An Overview of State Succession Issues Arising as a cResult of an Armed Conflict

This chapter addresses the question of what happens to legal protections of foreign investors under a BIT when an armed conflict leads to a situation of State succession. It first examines the actual practice of States concerning the continuation of BITs. Such continuation depends on the express or tacit agreement of both States concerned, i.e. the successor State and the “other State Party” to the BIT which was signed by the predecessor State. The chapter also examines the question of what happens to BITs when the States concerned have not agreed on any such continuation. I will argue that BITs do not automatically continue to be in force as of the date of succession unless both States concerned have agreed to such a continuation.