VI The Course of an Investment Arbitration: Overview of the Procedure

Subject(s):

Applicable law — Conduct of proceedings

This chapter provides an overview of the procedure of investment arbitration. Investment arbitrations resemble commercial arbitrations in many ways but are dramatically different in others. Above all, the presence of a sovereign state in every such dispute can transform the tone and nature of an investment dispute. The procedural aspects of a case in arbitrations subject to the ICSID Convention are determined pursuant to ICSID Arbitration Rules and relevant provisions of the applicable treaty. In non-ICSID investment treaty cases, the procedure is determined by arbitral rules selected by the parties such as the UNCITRAL Arbitration Rules, together with the relevant provisions of an applicable BIT, and the law of the legal place of the arbitration. Many BITs provide for a consultation or amicable negotiation period before disputes are submitted to arbitration. Meanwhile, arbitration pursuant to the ICSID Convention takes place in a self-contained procedural system, which is normally considered a-national, independent of any particular legal situs.