Arbitration and State Enterprises: Survey on the National and International State of Law and Practice by Karl-Heinz Bockstiegel

Abstract

Contracts between private companies and State enterprises have become common-place in international trade. When Western companies deal with parties from planned economies or from developing countries, they must more often than not contract with entities closely connected with the State – in socialist economies as a result of policy; in the Third World by necessity, given the frequent absence of a robust private sector. In addition, the Western industrialised States themselves have become major and occasionally sole shareholders in large enterprises which trade, and therefore contract, on the international market-place. The fact that one of the parties to an international contract is a State enterprise may make a considerable difference. To what extent may the State enterprise be entitled to the immunities or other prerogatives of the State? When may a State enterprise claim that an act of its own State constitutes an event of force majeure? May limitations...