3 Investment Treaty Arbitration

Subject(s):

Definition of investment — Investor — Treaties, interpretation — Treaty provisions

This chapter provides an overview of investment treaty arbitration, where a host state’s consent to investor–state arbitration is contained in an investment treaty. The first section explains the basic features of investment treaty arbitration, and compares it to other dispute resolution processes—such as domestic and international courts, investor–state arbitration based on contracts, as well as state-to-state arbitration. The second section describes different institutions and arbitral rules for investment treaty arbitrations. It outlines the phases of investment treaty arbitrations and the core features of the arbitration process, such as the choice of remedies. The third section deals with issues that arise following the conclusion of an investment treaty arbitration—notably, the review, enforcement, and compliance with arbitral awards. The fourth section evaluates two potential alternatives to investment treaty arbitration—alternative dispute resolution (ADR) and litigation in domestic courts.