Investment Arbitration in Turkey - Chapter 21 - Arbitration Law of Turkey: Practice and Procedure
Dr. Ziya Akinci, is the founding partner of AKINCI Law Oices, Turkey. He sits as an arbitrator in disputes under the ICC and other institute rules, including ITO and TRAC and also under ad hoc rules. Dr. Akinci acts as party counsel in arbitrations, both domestic and international, and under ICC, ICSID and ad hoc rules. He has previously been requested to provide expert opinions in some arbitration cases. Dr. Akinci is member of the ICC Court.
Originally from Arbitration Law of Turkey: Practice and Procedure
INVESTMENT ARBITRATION IN TURKEY
Laws concerning investment treaties have been rapidly growing and developing since the 1980s, and particularly in the past ten years. Also the number of bilateral (BIT) and multilateral (MIT) investment treaties has increased within the last fifteen years.
Bilateral investment treaties, or “BITs,” are created between two countries to establish terms, conditions, and protections for private investments made by the citizens of one state in the territory of another. Investment treaties ensure foreign investors certain minimum protections against foreign State action that could adversely affect their investments in the foreign State. In addition investment treaties also establish dispute resolution mechanisms for resolution of disputes between foreign investors and host countries concerning investments. The main purpose of a BIT formed between a developed state and a developing state is to encourage investments in the developing state.
The first BIT was entered into in 1959 between Germany and Pakistan and came into force in 1962. Turkey’s first BIT was with Germany In 1962. This was an interesting development in Turkey signifying its modern openness to foreign investment and encouragement to Turkish investors to invest abroad.
Most BITs allow investors to bring their disputes before one of several arbitration institutions. Some of the more popular institutions are the International Centre for Settlement of Investment Disputes, International Court of Arbitration, Stockholm Chamber of Commerce, and London Court of International Arbitration. Each of these institutions has its own set of governing rules. Many BITs allow parties to choose from among a number of institutions.
21 INVESTMENT ARBITRATION IN TURKEY
21.1.1 Investor’s Substantive Rights and Protections under BITs and MITs
220.127.116.11 Full Protection and Security
18.104.22.168 No Expropriation without Compensation
EXPROPRIATION AND COMPENSATION
22.214.171.124 Fair and Equitable Treatment
126.96.36.199 Denial of Justice
21.2 Energy Disputes
21.3.1 Jurisdiction of the ICSID Centre
188.8.131.52 Ratione Materiae
184.108.40.206 Ratione Personae
220.127.116.11.1 Most Favored Nation Clauses
18.104.22.168.2 Umbrella Clauses
21.3.2 ICSID Additional Facility Rules
21.4 THE INVESTEMENT CASES AGAİNST TURKEY
21.4.3 Europe Cement
21.4.4 Cementownia (Nowa Huta)
21.4.5 Saba Fakes
21.5 THE INVESTMENT ARBİTATİONS BY TURKİSH INVESTORS AGAİNST HOST STATES
21.5.1 Bayindir v. Pakistan
21.5.2 Sistem v. Kyrgyz
21.5.3 Barmek v. Azerbaijan
21.5.4 Rumeli-Telsim v. Kazakhistan
21.5.5 Ata v. Jordan
21.5.6 Karmer v. Georgia
21.5.7 Ickale v. Turkmenistan
21.5.8 Kilic v. Turkmenistan