International Compensation Mechanisms for Foreign Investment Losses Due to Government Actions: A Multilateral Approach

The article delves into the complex relationship between Iran and the United States, mainly focusing on the "JCPOA" and subsequent developments. This relationship has captured the attention of experts and researchers in political science, international relations, and international law. The core concern revolves around devising mechanisms that can ensure trust and reliability in government behavior within the realm of international relations and treaties. Despite acknowledging the prevalent skepticism regarding governments' trustworthiness in international politics, many theorists, including some pessimistic realists, argue for the necessity of establishing more stable mechanisms to achieve lasting peace in today's era. This article addresses a fundamental question about Iran-US relations: what will be the implications for Iran and foreign investment within the country if the United States withdraws from the JCPOA again? Can Iran's society and economy endure another setback? In this preliminary exploration, we aim to answer the question: "In current international law, what provisions exist to mitigate the risks associated with investing in foreign countries amidst political uncertainties?" Numerous measures and strategies have been devised in response to this question. However, these mechanisms and assurances typically come into play when the host government's actions harm the foreign investor. While various arrangements exist, there's no singular mechanism designed to address the actions of a third country in response to the host government's behavior. These arrangements typically involve guaranteeing the enforcement of arbitration decisions from courts handling disputes between foreign investors and the host government, as well as compensation funds and insurance. Subsequently, this article delves into examining and analyzing the broader policy options and potential solutions related to the aforementioned issue.