Treaty Interpretation in Investor-State Disputes
Volume III, Issue III, 2020
There are several International Investment Treaties/Agreements that are entered by the nations around the world for their economic and social growth. However, with this level of understanding arises several differences and disputes as well. In such times, understanding of the term ‘investment’ and how each investment treaty provisions are interpreted is absolutely necessary for resolving these differences. International Investment Agreements/Treaties entered between investors and the host states are governed by Public International Law, International Investment law and the laws governing International Commercial Arbitration. These laws mandate the contracting parties to include certain significant clauses including Most Favored Nation (MFN), National Treatment (NT), Fair and Equitable Treatment (FET) and Alternative Dispute Resolution (ADR) to enrich investments. The same will be dealt within this research paper in detail along with decided pronouncements. Methods of interpretation are considered vital in Investor-State disputes. However, most of the times while an arbitral tribunal deals with a dispute, there shall be an interplay between application and interpretation. This has also been discussed with attention to who may be the best interpreter. The Vienna Convention on Law of Treaties (VCLT) is considered to be one of the significant corner-stone when it comes to these kinds of interpretation and the same, along with several other methods of interpretation, are dealt with in detail. Further, it is necessary to understand and know about how each clause in the investment treaty are interpreted using these modes of interpretation by several arbitral tribunals. Thus, the last part of the paper will deal with the interpretation of these commonly found clauses in the international investment treaties and its effect on the arbitral award.
Keywords: Interpretations, Investment Treaty, Investor State Dispute and Arbitration.