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 signed by states in Washington in 1965. The goal of the ICSID is to provide a system of dispute settlement for international investment disputes between contracting states and foreign investors. Under the ICSID, foreign investors can have access to a mechanism for settling any dispute with a state in which they have invested. The Convention provides for the establishment of an impartial tribunal of experts to settle the disputes. The tribunal is usually composed of three members – two chosen by the parties involved in the dispute and the third chosen by the two parties. The ICSID has become the primary legal framework for resolving international investment disputes. It provides a speedy, cost-efficient and binding way to resolve disputes without going to the national courts. ICSID also provides incentives for investors to make their investments. For example, foreign investors who make investments under the ICSID are protected from certain kinds of expropriation or nationalization by the state. This gives investors a sense of security when investing in foreign countries, and can help to encourage more investment. Overall, the International Convention on the Settlement of Investment Disputes (ICSID) is an important international agreement that is designed to protect foreign investments and to provide a mechanism for settling any disputes that may arise. It provides a safe and stable environment for investors to make their investments in foreign countries.

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

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