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 provide foreign investors with a way to resolve legal disputes with countries. It was signed in Washington, D.C., on March 18, 1965, and is administered by the World Bank. The ICSID is legally binding on signatory countries, including the United States, and includes both arbitration and conciliation procedures. Under the convention, a foreign investor can bring a dispute with a host country to an international arbitration tribunal. This tribunal is made up of three arbitrators who are chosen by the claimant and respondent, usually with the help of an international organization such as the International Chamber of Commerce or the International Center for Settlement of Investment Disputes. Once appointed, the tribunal will assess the merits of the case and make a binding ruling. The convention provides a less formal, quicker, and less expensive process than going through the courts, and is seen as a very efficient way of resolving international disputes in a peaceful manner. The ICSID has been ratified by 137 countries, including the United States, Mexico, Canada, and all European Union countries. In Ohio, the ICSID is a valuable tool for foreign investors looking to do business in the state. It provides a legal framework for resolving disputes, and helps to promote foreign investment in the region. As such, it is an important part of the international framework for business transactions.

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

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