Part III Investment Disputes and Political Risk, 7 Establishing Arbitral Jurisdiction

Subject(s):

Foreign Direct Investment — Investor — Full protection and security

If a State fails to carry out its obligations to a foreign investor under a contract, its own national investment code, or a treaty with the investor’s home State, the investor may be able to vindicate its rights through international arbitration. In many cases, arbitration offers parties the only neutral forum in which to resolve disputes, and the only means to obtain a remedy that is enforceable across borders. Such a right, however, is hardly automatic. This chapter considers the jurisdictional requirements for invoking investment treaty protections. It discusses contractual arbitration, preliminary treaty concerns, who may initiate arbitration under investment protection instruments, and what is protected by investment protection instruments.