What is the International Convention on the Settlement of Investment Disputes (ICSID)?

The International Convention on the Settlement of Investment Disputes (ICSID) is an international agreement designed to serve as an impartial and independent means of settling investment disputes between states and foreign investors. The Convention was adopted in 1965 by the International Centre for Settlement of Investment Disputes (ICSID), an organization housed within the World Bank. The ICSID Convention offers a range of dispute settlement procedures, such as consultation, mediation, and conciliation, as well as a tribunal of international trade experts. The tribunal may award compensation to a foreign investor if a state fails to comply with the ICSID Convention. The Convention is also a source of investor rights in a state. The ICSID operates on the basis of consent, which means that all parties must consent to the decision. The state must first consent to the jurisdiction of the ICSID before the investor can commence a dispute settlement procedure. In addition, the Convention has enforcement mechanisms to ensure that states comply with any decision made by the ICSID tribunal. In Maryland, the ICSID Convention has been implemented by executive order. The agreement combined with federal regulations provides investors with a clear framework for settling disputes with states. It also provides a means of enforcing any decisions made by the International Centre for Settlement of Investment Disputes.

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What is the International Convention on the Settlement of Investment Disputes (ICSID)?

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