Investment arbitration is a procedure to resolve disputes between foreign investors and host States (also called Investor-State Dispute Settlement or ISDS). The possibility for a foreign investor to sue a host State is a guarantee for the foreign investor that, in the case of a dispute, it will have access to independent and qualified arbitrators who will solve the dispute and render an enforceable award.

International investment law and investment arbitration promote economic development through the continuous flow of foreign investment and technology to capital-constrained countries. Unlike contractual agreements that require extensive and confidential negotiations, investment treaties provide a transparent legal framework that facilitates decision-making for investors. The guarantees in these treaties tend to be comprehensive and capable of protecting investors against a wide range of governmental measures.

Presentation:

Reading:

0) Introduction to Investment Arbitration (Source: Aceris Law LLC)

1) Energy Charter Treaty: Part III: Investment Promotion and Protection + Article 26

2) ECT: A Reader's Guide: C. Investment

3) Example: Venezuela seizes foreign oil fields

4) Konoplyanik, Andrei and Walde, Thomas. Energy Charter Treaty and its Role in International Energy: Investment (pages 532-541)

5) GAR_ECT: Development of the Energy Charter Treaty (pages 1-3), Jurisdiction of tribunals established pursuant to the ECT (pages 3-4), The ECT’s substantive protections (pages 11-15), FET (pages 15-21), Expropriation (pages 21-23).