What is the process for resolving a dispute between two countries?

When two countries involved in international trade disagree, they typically attempt to settle the dispute through diplomatic negotiations. If these negotiations fail to result in an agreement, the countries may decide to resort to international arbitration or mediation. International arbitration is a process whereby disputing countries agree to allow an impartial third party to settle the dispute. Usually, the countries select an international organization, like the International Chamber of Commerce, to serve as an arbitrator. The arbitrator will review the evidence of both sides, consider the facts in light of the applicable law, and render a decision on the dispute itself or on specific points of disagreement. The decision of the arbitrator is binding, meaning that the parties cannot challenge it in a court of law. Mediation is another form of dispute resolution between two countries. In mediation, the disputing parties agree to select a neutral third-party mediator to help them reach a resolution. The mediator will act as an intermediary between the two parties and help facilitate a settlement. Unlike arbitration, the decisions reached in mediation are not binding and the parties can still seek compensation in court if necessary. No matter which process is chosen, the goal is for the two countries to come to an agreement on their own. This can help minimize the cost, time, and disruption to business resulting from an international dispute.

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What is the process for resolving a dispute between two countries?

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