Originally from Dispute Resolution Journal

Arbitration is a useful tool in the conduct of foreign relations. The interconnection of political, economic, and legal issues in the international arena calls for effective and flexible forms of peaceful dispute resolution. Where disputes between two countries cannot be resolved diplomatically, arbitration has proved an efficient alternative. Arbitration can be entered into pursuant to preexisting treaty commitments, as in our recent successful settlement of an arbitration with the United Kingdom over user charges at Heathrow Airport, or arbitration or mechanisms inspired by arbitration can be instituted following international crises, as occurred after the Persian Gulf War and the Iranian Revolution. Arbitration allows us to isolate disputed issues with any country, no matter what the status of our relations otherwise, and to resolve them in a contained fashion.