Part III Investment Disputes and Political Risk, 9 Mediation and Conciliation of Investment Disputes

Not all investment-related disputes are resolved through fully adversarial processes. In fact, both private businesses and governments are increasingly turning to various forms of mediation and conciliation in the face of serious disagreements rather than resorting immediately to international arbitration. A number of investment treaties also mention the possibility of alternative dispute resolution procedures, although such procedures are rarely if ever mandatory. This chapter addresses different alternatives to arbitration and litigation, with emphasis on the rather fine distinctions between them. It also discusses the methods by which mediation and conciliation may be imposed as a mandatory step preceding arbitration or litigation, with particular attention to investment contracts.