Essay on The importance of Arbitration in Foreign Investments

Essay on The importance of Arbitration in Foreign Investments

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Most of the foreign investments are protected by investment treaties and if there is any breach, the investor can seek for compensation under international arbitration . The question is whether to which extent does the arbitration provides them solution and which ways or methods they can seek alternative to arbitration. The answers for all these will be discussed in this research analysis step by step considering all the issues and the pros and cons as well, which it will give a meaningful conclusion at the end.
International arbitration serves as the important method where foreign investors can bring claims against host state arising from an investment disputes under the current international investment law . Investor State Dispute Settlement (ISDS) provisions are in place under all current International Investment Agreements (IIAs), where the main aim is to provide that arbitration should act as the main actor in resolving investment disputes and not litigation in national courts which is an essential part of investment protection .
Still to date international arbitration has got its place in resolving disputes arising between them, due to its flexibility, cheaper, depoliticizing investment disputes and because of the familiar procedure etc…Further it ensures the parties to exercise considerable amount of control over litigation process whereby further ensuring that the awards are enforceable by creating awareness of legitimacy .
However, in practice there are also many disadvantages that comes along with international arbitration which would possibly minimizes IIAs benefits to developing economies. One of the main disadvantages is the unique quality of international investment arbitration, including a power as defendant and...


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...ble at
http://www.iccwbo.org/uploadedFiles/Court/Arbitration/other/db_rules_2004.pdf.
Onwuamaegbu U (2005). “The role of ADR in investor–State dispute settlement: The ICSID experience”. News from ICSID, Vol. 22, No. 2: 12–15.
Moore CW 2003, The Mediation Process: Practical Strategies for Resolving Conflicts. San Francisco: Wiley, John
And Sons
By Roberto Echandi, 28 June 2011, Investor-state dispute prevention: A conceptual framework, NCCR trade working paper No 2011/46. Available in the URL: http://www.wti.org/research/publication/?tx_nccr_pi1%5Bshow%5D=241&cHash=4d3b7571eaf04dc0757b47c975561051
By Roberto Echandi, 28 June 2011, Investor-state dispute prevention: A conceptual framework, NCCR trade working paper No 2011/46. Available in the URL: http://www.wti.org/research/publication/?tx_nccr_pi1%5Bshow%5D=241&cHash=4d3b7571eaf04dc0757b47c975561051

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