1. International Investment Law (6) & (7)
ZHANG Jiao

2. Investment Dispute Settlement

3. Investment Dispute Settlement
State - State
Diplomatic Protection
Direct Disputes between States
Investor - State
Domestic Courts
Arbitration and Conciliation

4. Diplomatic Protection
Nationality
- existed continuously from the time of the injury until the claim is presented or, according to some, until the claim is settled.
Exhausted the local remedies
Limitation
- political discretion of the government;
- investor is never in control of the process;
- important disadvantages to the States concerned – Calvo Doctrine;
- unfriendly measures or countermeasures (reprisals)
Thinking:
Subjects of international law
Responsibility of States to protect their nationals;
Impacts of international politics on the investment dispute settlement

5. Domestic Courts – Limited Usefulness
Lack of impartiality
Bound to apply local law
Lack of expertise
Host
jurisdiction
State immunity
Home or other’s
Non-justiciability
Political questions
Lack of a close connection

6. Arbitration Institutions and Regimes
ICSID
ICSID Additional Facility
The London Court of International Arbitration
UNCITRAL Rules
The Iran-US Claims Tribunal
The Permanent Court of Arbitration

11. ICSID ICSID Convention: - in the framework of the World Bank;
- adopted on 18 March 1965 in Washington, entered into force on 14 October 1996.
ICSID
- standard clauses + detailed rules of procedures + institutional support;
- jurisdiction: consent
- self-contained
- not threatened by the non-cooperation of a party
- binding and final, and not subject to review (except Art )
- 1972: first case; 1970s and 1980s: one or two cases per year; 1995: four; early 2007: more than 100 were pending.

12. ICSID Additional Facility
Either the host state or the investor’s home state is not a party to the ICSID Convention.
Recognition and enforcement
the Convention on the Recognition and Enforcement of Foreign Arbitral Award of 1958 (the New York Convention)
Not exempt from the scrutiny and setting aside of competent national courts.

13. Exhaustion of Local Remedies
Not as a matter of jurisdiction or admissibility but as part of the evidence;
MFN clause ???

14. Jurisdiction Issues The Fork in the Road
same dispute, same cause of action, same parties
Selection of Domestic Courts in Contracts
- forum selection clause
- breach a treaty or breach a contract ??
- problems
Arbitration and Conciliation

15. Thinking: Politics and international investment dispute settlement
Impacts of international politics on the settlement of international investment disputes?
How the international investment law seeks to depoliticize the international investment disputes?
Whether it may leads to other problems?