International Investment Law: A Guardian Through Provisions of ICSID and Denunciation of the Convention
Volume III, Issue II, 2020
In this post-modern world, it is delightful to understand and see the rapid and blooming growth of economics and how individuals contribute to this development regardless of ‘cross-bounder’ or extra territorial transactions being necessary rather than optional. Also, it is of significant importance to understand that not all agreements and contracts between commercial organizations operating across borders or commercial organizations and states that they invest in are executed swiftly. Some transactions between entities get baleful and thus, give rise to a dispute which cannot or may not be adjudicated by the domestic laws of a state because of the transaction being extra territorial in nature. Overseeing situations like this, international agreements and contracts set out a dispute resolution clause which, authorizes the parties in the agreements to submit their dispute to an arbitration tribunal. These tribunals depend on investment protection instruments like Bilateral Investment Treaties, which are on the basic principles of International Investment Law and protect foreign investors against any disorderly activities of a host State.
In this article, we shall discuss in dept the International Center for Settlement of Investment Disputes (ICSID). A detailed analysis of how investment by individuals in foreign sates are protected, an overall operational mechanism of international investment arbitration which respect to ICSID shall be discussed. Also, this article will have a special emphasis on a grey area issue in the world of investment arbitration which is the denunciation of the ICSID convention, its cause and effects, its outcome to on the denouncing sate, on foreign investors and most important of all; its outcome the standing BITs or other investment protection treaties and the jurisdiction of the Center or the tribunal after such denunciation by states using brief case studies.