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

The International Convention on the Settlement of Investment Disputes (ICSID) is a multilateral agreement that provides for an internationally recognised form of dispute resolution specifically designed to resolve disputes between foreign investors and states. It was established in 1965 and over 160 states are members, including the United States and Wisconsin. The Convention effectively creates a court system that incorporates both state and investor rights. It provides binding arbitration and conciliation procedures to settle disputes over investments between foreign investors and host states. This means that private investors can bring claims against host states for violations of their investment rights, while states can also bring claims against foreign investors when their obligations have not been properly fulfilled. Under the Convention, any investor from a state that is a party to ICSID can bring a claim against a state in which it has made an investment. The Convention also permits states to bring claims against investors from another state that is a party to the Convention. All proceedings are confidential and each state party to the Convention is obliged to abide by any awards that are issued. This therefore provides an effective form of dispute resolution that is tailored to the needs of foreign investors and states.

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

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