Sociology | Mercantile Law | International Law | International Relations

Calvo Clause and its Uselessness
The Calvo Doctrine is a foreign policy doctrine which holds that jurisdiction in international investment disputes lies with the country in which the investment is located. The Calvo Doctrine thus proposed to prohibit diplomatic protection or (armed) intervention before local resources were exhausted. An investor, under this doctrine, has no recourse but to use the local courts, rather than those of their home country.

The clause is mostly practiced in South American region where when a state enters into an agreement with any national of other state, ensures the inclusion of this clause in there.

But if we consider the practical impacts of this clause then it is not of any use. This is because it is already the rule of International Law that the door of international courts will be knocked only when the local institutes of justice remain unable to ventilate grievances. Secondly, even if a national doesn’t want to acquire diplomatic protection, the state can compulsorily grant him. So, the clause is mere a ritual not affecting the International Law.