Calvo Clause — KSLU Pil Notes
Calvo Clause
A Calvo Clause is a clause in contracts between foreign investors and a host State where the investor agrees to:
- Submit all disputes to local courts only
- Waive the right to seek diplomatic protection from their home State
| Perspective | View |
|---|---|
| Host States (Latin America) | Valid — keeps disputes local, respects sovereignty |
| Home States (USA, Europe) | Invalid — a private person cannot waive the State’s independent right to protect its nationals |
| ILC position | Clause binds the individual only; the home State retains its own right to espouse the claim |