![Barcelona Traction in the 21st Century: Revisiting Its Customary and Policy Underpinnings 35 Years Later.](/assets/artwork/1x1-42817eea7ade52607a760cbee00d1495.gif)
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Barcelona Traction in the 21st Century: Revisiting Its Customary and Policy Underpinnings 35 Years Later.
Stanford Journal of International Law 2006, Summer, 42, 2
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Publisher Description
INTRODUCTION In the 1970 Barcelona Traction (1) case, the International Court of Justice (ICJ) articulated a rule, ostensibly based on custom, that a corporation is a national of the state in which it is incorporated for the purpose of diplomatic protection. (2) The Court held that Belgium lacked standing to bring a claim on behalf of Belgian shareholders who owned most of the Barcelona Traction, Power and Light Company, which had been expropriated by Spain, because it was incorporated in Canada. Even when the case was decided, critics lambasted the Barcelona Traction rule of incorporation for being out of touch with economic reality--that is, for failing to adequately protect foreign direct investment.
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