The Investment Requirement Of The ICSID Convention And The Role Of Investment Treaties - ARIA - Vol. 26, No. 3
Originally from American Review of International Arbitration - ARIA
The history of the 50 years of the Washington Convention on the Settlement of Investment Disputes between States and Nationals of Other States (“ICSID Convention”), which established the International Centre for Settlement of Investment Disputes (“ICSID” or “Centre”), cannot be written without reference to the international treaties entered into by States for the protection and promotion of foreign investments (“investment treaties”). Without the extraordinary proliferation of investment treaties, especially bilateral investment treaties (“BITs”), the significance that the ICSID Convention gained in the international community would not be as great. Until 1987, when the first arbitration under the ICSID Convention pursuant to an investment treaty was registered by the Centre, only 20 disputes had been referred to ICSID arbitration and two to ICSID conciliation. By the end of the first half of 2014, 473 cases were registered by the Centre under the ICSID Convention and the ICSID Additional Facility Rules, out of which 73% were submitted pursuant to investment treaties. Investment treaties made disputes referred to ICSID arbitration pursuant to arbitration clauses contained in contracts concluded between the disputing parties the exception.
In light of the strong connection between the ICSID Convention and investment treaties, certain decisions rendered by arbitral tribunals constituted under the auspices of the Centre conferred a special role on investment treaties in the interpretation and application of the ICSID Convention.