First, "the primary purpose of BITs is to promote foreign investment" and the Hull Doctrine is more favorable to investor interests than the Calvo Doctrine.
159) The adoption of the Hull doctrine in these arbitral awards, however, is not demonstrative of a recent shift away from the Calvo doctrine.
Claims Tribunals demonstrate that some arbitrators supported the Calvo Doctrine and alternative compensation approaches such as "appropriate compensation" as valid substitutions to the typically Western compensation approach, the Hull Doctrine.
In a diplomatic note to the United States, in 1902, Luis Maria Drago, the Argentine Minister of Foreign Affairs, proclaimed the Drago Doctrine principle, which differed from the Calvo Doctrine, that "public debt cannot give rise to armed intervention or even to the material occupation of the soil of American nations by a European Power.
ANGHIE, supra note 5, at 209; Rodrigo Polanco Lazo, The No of Tokyo Revisited: Or How Developed Countries Learned to Start Worrying and Love the Calvo Doctrine, ICSID Rev.
Strict adherence to the Calvo Doctrine was understandable when international law offered no options other than local courts or foreign warships.
Latin American countries where the Calvo doctrine is king, (232) and an
commenting on the Calvo doctrine and its implementation in settling
204) Mexico, after all, was the birthplace of the Calvo Doctrine
21) Although there was considerable resistance outside Latin America to the doctrine, especially by commentators in the United States, the Calvo Doctrine has had an important influence on Latin American law and on the development of Latin American notions of sovereignty.
23) First, like the principle of national treatment incorporated into the GATT(24) and the NAFTA,(25) the Calvo Doctrine espouses equality of treatment between foreign citizens and citizens of the host country.
Second, the Calvo Doctrine requires foreign investors to submit to the national laws of the host country, and prohibits the intervention of the foreign citizen's home law or the intervention, diplomatic or otherwise, of the foreign state in protecting the foreigner's interests.