Enforcement of Investment Arbitration Awards

Abstract

The enforceability of decisions is a central pillar of any dispute resolution mechanism, whether of internal or international nature. This chapter aims to explain the rules for enforcement under the two main enforcement systems that are currently in force in the realm of investment arbitration: the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, and the 1965 Washington Convention (the “ICSID Convention”). In particular, Section 2 analyses the scheme for enforcement under the New York Convention, and assesses the obligations of the states parties; Section 3 examines the scheme for enforcement under the ICSID Convention along with the related obligations of states parties. In both cases, we will shortly introduce a linkage to the threat that sovereign immunity for execution of awards poses to the function of the investor-state arbitration regime. Some conclusions on the relationship between the two Conventions will be attempted. In such a context we will finally propose some reflections on an issue related to the enforcement and recognition of arbitral awards which could assume particular relevance in the very near future: the proposed investment court system (ICS) and multilateral investment court (MIC). We thus briefly address the main doubts that have been raised concerning the enforcement and recognition of decisions by the ICS/MIC.