Investment arbitration

When a foreign investor believes a State has affected its investment through regulatory measures, expropriation or breach of commitments, it may resort to investment arbitration under bilateral or multilateral treaties, rather than litigating before that State's own courts.

The ICSID system and investment treaties

The 1965 ICSID Convention, to which Argentina is a party, created a specialized center for resolving disputes between States and investors from other contracting States. Many bilateral investment treaties provide the State's consent to this mechanism.

Access to investment arbitration depends on the existence of an applicable treaty, the investor's nationality and the qualification of the investment. The jurisdictional analysis is a central and complex stage of this type of case.

Strategy and enforcement of the award

These proceedings combine public international law, the applicable treaty and the procedural rules of the chosen forum. Preparing the evidence, valuing the damages and the protection standards invoked require a rigorous approach.

ICSID awards have their own recognition regime; outside that system, the New York Convention may be relied upon. We assist the investor in the preliminary assessment, the conduct of the case and the enforcement alternatives.

Common mistakes

• Assuming access to ICSID exists without checking the applicable treaty
• Neglecting the nationality and protected-investment requirements
• Omitting prior negotiation periods required by the treaty
• Underestimating the evidentiary complexity of valuing damages
• Failing to plan for eventual enforcement of the award from the outset

Frequently asked questions