8 Arbitration under Investment Treaties
Nigel Blackaby, Constantine Partasides QC, Alan Redfern, Martin Hunter
- Investment — Investor
This chapter describes the arbitration process under international investment treaties, in particular under the Washington Convention of 1965. This Convention aimed primarily to create a new arbitral forum for the resolution of disputes between investors and states by means of the inclusion of arbitration clauses in state contracts. The travaux préparatoires of the Convention also made clear that the consent of the state to arbitration could be established through the provisions of an investment law, which prompted many states to develop a programme of bilateral treaties for the promotion and protection of investments, so-called bilateral investment treaties (BITs), which set out protections in favour of foreign investment. The dramatic growth of BITs since the mid-1980s has led to the adoption of similar provisions in the ‘investment chapters’, or collateral agreements, to multilateral economic cooperation treaties, such as the Association of Southeast Asian Nations (ASEAN) Comprehensive Investment Agreement.