A

Amicable Settlement 148

Annulment of awards (ICSID) 179–187

Annulment Committee 180

Grounds for 181

Corruption of arbitrator 181

Failure to state reasons 183

Serious departure from fundamental rule

of procedure 182

Tribunal manifestly exceeded powers 181

Tribunal not properly constituted 181

Procedure 180

Anti-bribery and anti-corruption laws 33

Arbitrary impairment 73

Arbitration institutions 16, 123

Arbitration process 121–127

Choice of Forum 121

Ad hoc vs institutional arbitration 123

National courts vs investment arbitration 121

Exhaustion of local remedies 122

Fees and costs 125

Allocation between parties 126

Amount of 125

Types of 125

Multi-party and multi-claim disputes 124

Procedural steps 143

Roadmap 143

Rules 12

Scope of 13

Arbitrators 130–134

Challenges to 132

Law Firm Partners 133

Press comment 132

Views in academic publications 133

International Bar Association Guidelines on Conflict of Interest in International

Arbitration 132, 135

Qualifications 131, 142

Selection of 130, 142

B

Bifurcation 155–158

Factors considered 156

ICSID Rules 156

Procedure 156

Pros and cons of 157

Rationale for 155

Bilateral Investment Treaties

Advantages of 11

Criticism of 15

History of 11

C

CFIUS See Committee on Foreign Investment in the United States

Choice of Counsel 128–129

Criteria for selection 128

Developing a pool of candidates 128

Making the choice 129

Committee on Foreign Investment in the United States (CFIUS) 22 Conciliation 146–148

Process 147

Pros and cons 147

Consent to arbitration 88

Convention on Recognition and Enforcement of Foreign Arbitral Awards See New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards

Counterclaims 166–169

Consent to jurisdiction 167

Jurisdictional requirements 166

Merits 169

D

Damages 170–178

Costs 125, 176

Fair market value 173

Interest 175

Period of accrual 175

Rate of 175

Simple or compound 175

Limitations on recovery of damages 176

Role of experts 170

Standards of compensation 171

Breaches of investment treaties 172

Chorzow Factory case 172

Lawful expropriation 171

Valuation of 170

Valuing Incomplete and start-up businesses 174

Double taxation treaties 35

Capital gains 36

Dividends 37

Permanent establishment 36

Transfer pricing 38

E

Economic sanctions 32

Enforcement of judgments and awards 188–194

ICSID 191

ICSID awards 189

Non-ICSID 192

Non-ICSID awards 190

Sovereign immunity defense 191

Evidence 159–165

Burden of proof 163

Documentary 159

Document production 161

Good faith 162

International Bar Association Rules on the Taking of Evidence in International Arbitration 159

Redfern Schedule 162

Standard of proof 163

Tribunal’s discretion 163

Witness 160

Factual 160

Exhaustion of local remedies 100, 122

Expropriation 68

Indirect 68

Nature of 69

Requirements for lawful expropriation 69

F

Fair and equitable treatment 70

Fees and costs 125, 176

Allocation between parties 126

Amount of 125

Types of 125

Foreign Direct Investment 20–31

Administrative requirements 22

Corporate Structures available for 24

Domestic laws 28

Exchange controls 26

Golden shares 25

Incentives 25

International treaties and contracts 28

Minimum investment periods 26

Performance requirements 27

Real estate controls 27

Remittance of profits 26

Reporting requirements 23

Restrictions on 21

Fork-in-the-Road 104, 123

Freezing Clauses 59

Full protection and security 53, 65, 70, 72

G

Golden shares 25

H

Home state laws 32–34

Anti-bribery and corruption laws 33

Economic sanctions 32

I

Initiation of claims 141–145

Constitution of tribunal 142

Filing of initial claims and defenses 142

First procedural meeting 143

Notice period 141

Pre-arbitration proceedings 141

Subsequent procedural steps 143

Insurance, political risk See Political Risk Insurance

Interim measures 149-154

Arbitration rules 149

Criminal proceedings 152

Interim measures against the government 151

National courts 150

Practical effects 150

Security for costs 153

International Bar Association

Guidelines for Conflicts of Interest in International Arbitration 132, 135

Rules on the Taking of Evidence in International Arbitration 159

International Centre for the Settlement of Investment Disputes (ICSID) 11, 12, 29, 51, 88, 122,

123, 131, 142

Additional Facility 12

Allocation of fees 126

Annulment 179

Arbitration rules 12, 130, 131, 142, 149, 150, 151,156

Bifurcation 156

Conciliation 147

Consent 89

Counterclaims 166

Interim measures 149, 150

Investment 90

Jurisdiction 88

Model Arbitration clause 58

National of another Contracting State 92

Recognition and enforcement of awards 189

Standards for disqualification of arbitrators 132

Third-party funding 137

Waiver of immunity from execution 62

International Chamber of Commerce

Arbitration rules 62

Arbitrators 163

International Court of Arbitration 16, 217–218

Mediation rules 147, 149, 150

International investment agreements 49–56

Advantages of 11, 12

Criticism of 15

Denial of benefits 51

Determining existence of 49

Dispute resolution 55

Host state exceptions 54

Implementation of 52

Nationality requirements 50

Legal entities 51

Natural persons 50

Pre-establishment protection 53

International Law Commission Draft Articles on the Responsibility of States for Internationally Wrongful Acts 109

Investment contracts 57–64

Choice of forum 58

International arbitration clause 58

Stabilization clauses 25, 59

Freezing clauses 59

Rebalancing provisions 60

Waiver of sovereign immunity 61, 191

Immunity from execution 62

Immunity from jurisdiction 61

J

Jurisdiction 88–96

Consent 89

Nature of investment 90

State v foreign national 91

Contracting state 91, 92

National of another contracting state 92

Temporal jurisdiction 97

Exhaustion of local remedies 100

MFN clause 101

Retroactive application 98

Time limits 102

Waiting periods 99

M

Mediation 146–148

Procedures 146, 147

Pros and cons 146

Minimum standard of treatment 70

Most-favoured-nation 77–85

Importation of provisions from other treaties 81

Procedural provisions 82

Substantive provisions 81

Objective and definition 79

Pre-investment or post-investment 77

Relevant tests 80

Differential treatment 80, 81

In like circumstances 80

Legitimate policy reason 81

N

National Investment laws 21

National treatment 77–85

Objective and definition 78

Pre-investment or post-investment 77

Relevant tests 78

Differential treatment 79

In like circumstances 78

Legitimate policy reasons 79

New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards 11, 29, 188, 190, 192

P

Performance requirements 27

Political Risk Insurance 40–46

Commercial insurers 42

Coverage issues 44

Public insurers 41

Types of coverage 42

Specialty products 43

Traditional products 43

Pre-investment issues 20

Administrative requirements 22

Dispute resolution mechanisms 28

Domestic investment laws 21

Exchange controls 26

Foreign investment structures 24

Golden Shares 25

Incentives for foreign investors 25

Minimum investment periods 26

Minimum investment thresholds 23

Performance requirements 27

Protection of foreign investment 28

Domestic laws 28

International treaties and investment contracts 28

Real estate controls 27

Registration and approval 22

Reporting requirements 23

R

Re-balancing provisions 60

Recognition and enforcement of awards 188– 194 ICSID awards 189

Non-ICSID awards 190

Sovereign immunity defense 191

ICSID 191

Non-ICSID 192

Restrictions on foreign investment 21, 26

S

Seat of arbitration 48, 59, 63

Set-aside of non-ICSID awards 183

Grounds 184

Procedure 184

Stabilisation Clauses 59

State responsibility 109–113

Attribution to a state 110

State agencies and state-owned enterprises 110

Breach of international obligation 111

Internationally wrongful 111

Circumstances excusing wrongfulness 111

Legal consequences 112

Substantive Protection 67-76

Arbitrary Impairment 73

Expropriation 68

Indirect 68

Nature of 69

Requirements for lawful expropriation 69

Fair and Equitable Treatment 70

Full Protection and Security 72

Most-favoured-nation See Most-favourednation National treatment See National treatment Umbrella clause 74

T

Tax Issues 35–39

Double taxation treaties 35

Capital gains 36

Dividends 37

Permanent establishment 36

Transfer pricing 38

Documentation 38

Methodology 38

Temporal jurisdiction 97

Applicability of treaty after denunciation 102

Denial of benefits 103

Exhaustion of local remedies 100

Temporal exhaustion requirements 100

Fork-in-the-road 104

Preconditions 99

Reduction or elimination through MFN clause 101

Retroactive application of treaty 98

Composite acts 99

Continuing acts 98

Tax issues 103

Time limits 102

Waiting periods 99

Waiver 104

Third-party funding 135–140

Allocation and recovery of costs 135

Conflicts of interest 135

Jurisdiction 137

Security for costs 136

Transfer pricing 38

Trans-Pacific Partnership Agreement 69

Transparency 195–196

Mauritius Convention on Transparency 195

UNCITRAL Rules of Transparency 195

U

Umbrella clause 74

UNCITRAL

Arbitration rules 12, 126, 130, 138, 150, 167, 168, 195

Consent 167

Model Law on International Commercial Arbitration 184

Set-aside 184

Transparency rules 195

V

Vienna Convention on the Law of Treaties 68, 98, 102