FDI s in the Arms Industry. The Interplay between Investment Law and Arms Trade Regulation

Cross-border investment and trade in arms and dual-use technologies have grown significantly in recent years and are expected to expand further in response to the rearmament initiatives adopted by many states and international organisations. While this trend may foster the development of strategic industries, it also increases the risk of the relevant international, European Union and domestic arms transfer control regimes being circumvented. Against this backdrop, the article examines the role of international investment agreements in facilitating the implementation of obligations governing the transfer of arms and dual-use items. Although these agreements are not primarily intended for arms-transfer governance, the article illustrates that certain treaty provisions may support the application of arms-transfer regulations and help prevent their circumvention, ultimately contributing to respect for human rights and international humanitarian law.