Utilisation of State-to-State Arbitration Based on the Compromissory Clause in Practice

Abstract

A large variety of disputes can possibly be covered under the scope of ‘interpretation’ or ‘application’ of an international investment agreement by a state-to-state arbitration tribunal. However, in the absence of cases, the exact nature of disputes which could emerge from the compromissory clause in international investment agreements in a state-to-state arbitration has not been explored in detail. Through an evaluation of the international investment agreements, existing literature and the few cases of state-to-state arbitration, this chapter enumerates the disputes which may emerge for consideration. A key finding of this chapter is that while an attempt may be made to classify disputes under the umbrella of ‘interpretation’ or ‘application’ of a treaty, such classification may be inadequate and it is a distinct possibility that tribunals may deal with mixed questions in practical situations.