International Law Review

International Law Review

Assigning Responsibility to States in the ICSID Arbitration Procedure

Document Type : academic

Authors
Alireza Mashhadizadeh 1
Amirhossein Ghodratnama Shabestari 2
1 Assistant Professor, Islamic Azad University, Tehran Central Branch, Faculty of Law
2 PhD Candidate in Private Law, Islamic Azad University, Tehran North Branch
10.22066/cilamag.2023.704065
Abstract
In Draft Articles on Responsibility of States for Internationally Wrongful Acts, the general notions related to the international responsibility of states are specified. However, this is doubtful whether these notions can be used in the ICSID arbitration process. According to the convention and the procedure of the ICSID Arbitration Center, in the absence of an explicit agreement in the arbitration agreement, state responsibility based on the ICSID Convention and the rules of customary international law can be brought to the attention of the ICSID International Arbitration Center. The absolute obligations of the investee state concerning investment security are compatible with the Draft Articles on Responsibility of States. The application of the provisions of the Draft Articles on Responsibility of States is another reason for ignoring domestic laws to avoid international responsibility in the ICSID arbitration procedure and will contribute to stability in the field of international investment. On the other hand, the development of the concept of human rights to support the foreign investor for the purpose of establishing the absolute responsibility of the investee state in the ICSID arbitration procedure indicates the absolute responsibility of the investee state for the benefit of developed countries, which consequently limits the sovereignty of the investee state and as a result will lead to the violation of national sovereignty, unilateralism, and finally, the states’ tendency to withdraw from the ICSID Convention.
Keywords
ICSID
International Investment Contracts
Jurisdiction
Investment Security
State Responsibility
Sovereignty
Human Rights

Subjects

  1. - Books

    1. Abédjinan M. Sandrine Tanon. Le droit des investissements internationaux vu par la CIJ et le CIRDI, Droit, Université de Bordeaux, France. 2016.
    2. Blanco Sebastian, Mantilla, Full Protection and security in international investment law, European Yearbook of International Economic Law, Springer, 2019.

     

    1. Brown, Chester, Evolution in investment treaty law and arbitration, Cambridge University press, 2011.
    2. Chaisse, Julien, Paradigm Shift in international economic law rule making, springer, 2017.
    3. Chinkin, Christine, Baetens Freya, Sovereignty, Statehood and State Responsibility, Essays in Honor of James Crawford, Cambridge university, 2015.
    4. Crawford, J. State responsibility (general part), Cambridge University press, 2013.
    5. Crawford, J. The International law Commission’s Articles on State responsibilitiy, Cambridge University press, 2002.
    6. De Brabandere, Eric, Host States’ Due Diligence Obligations in International Investment Law, Syracuse J. Int’l L. & Com. 2014.
    7. Habbyev, Resul, Diplomatic Protection as a Dispute Settlement Mechanism in Investor-State Arbitration, in the Light of Modern International Law, Department of Law Brunel University, London, 2018.
    8. Ho, Jean, State Responsibility for for Breaches of Investment Contracts, Cambridge University press, 2018.
    9. Hober Kaj, Cross-examination in International Arbitration, oxford university press, 2014.
    10. Kenfack, Hugues, Droit du Commerce International, 7e édition, Dalloz, 2019.
    11. Kube, Vivian, EU Human Rights, International Investment Law and Participation, Springer, 2019.
    12. Lorz, Ralph Alexander, ‘Protection and Security (Including the NAFTA Approach)’ in Marc Bungenberg, Jörn Griebel, Stephan Hobe and August Reinisch (eds), International Investment Law (Nomos, Baden-Baden, 2015.
    13. Shreuer, Christoph, The ICSID convention a commentary, second edition, Cambridge University press, 2009.
    14. Radi, Yannick, Research Handbook on Human Rights and Investment, Edward Elgar, 2018.
    15. Wanhaul, Moyal, International Investment Law and Right to Regulate, Routledge, 2016.

     

    - Articles

    1. Shreuer, Christoph, “Jurisdiction and Applicable Law in Investment Treaty Arbitration”, McGill Journal of Dispute Resolution, vol. 1:1, 2014.

     

    - Thesis

    1. Al-adba, Nasser Mechin, The Limitation of State Sovereignty in Hosting Foreign Investments and The Role of Investor-State Arbitration to Rebalance the Investment Relationship, phd thesis, Manchester University, 2014.

    - Cases

    1. ADF v. United States, Award, 9 January 2003, ICSID Reports 470.
    2. AGIP S.p.A. v. People's Republic of the Congo, ICSID Case No. ARB/77/1.
    3. Arbitration between Compañia de Aguas del Aconquija SA and Vivendi Universal SA v. Argentine Republic, Resubmitted Case, Award (20 August 2007).
    4. Asian Agricultural products limited. (AAPL) v. Sri lanka Case No. ARB/87/3.
    5. Azurix v Argentina, ICSID Case No ARB/01/12, Award, 14 July 2006.
    6. Burlington Resources Inc. v Ecuador, Decision on Jurisdiction, ICSID Case No. ARB/08/5 (2 June 2010).
    7. CMS Gas Transmission Company v Argentina, Award (12 May 2005) at paras 302-331, ICSID, ORIL IIC 65; CMS Gas Transmission Company v Argentina, Decision on Annulment, (25 September 2007).
    8. Gustav F W Hamester GmbH & Co KG v. Republic of Ghana, ICSID Case No.ARB/07/24, Award, Jun 18, 2010.
    9. ICSID, Phoenix Action, Ltd. v. The Czech Republic, Award, No. ARB/06/5, 15 April 2009.
    10. Jurisdictional Immunities of the State (Germany v. Italy, Greece intervening), I.C.J. Reprot, 2012.
    11. p. A. And ASTALDIS.p.A. v. A lgeria, Sentence, ICSID Case No.ARB/05/3 (12November 2008).
    12. Maffezini, v Kingdom of Spain, ICSID Case No. ARB/97/7
    13. Noble Ventures v. Romania, Award, ICSID Case No. ARB/01/11 (12 October 2005.
    14. Oil Platforms (Iran v. United States), Judgment Merits (2003) ICJ, ICJ Rep 161.
    15. Tulip Real Estate Investment and Development Netherlands BV v. Turkey, Award (10 March 2014) at, ICSID, ORIL IIC 641.
    16. Maritime International Nominees Establishment v. Republic of Guinea, ICSID Case, ARB/84/4, Interim Order No.1 Concerning Guinea s Application for Stay of Enforcement of the Award dated August 12, 1988, ICSID Reports.
    17. ARB/84/4, Interim Order No.1 Concerning Guinea s Application for Stay of Enforcement of theAward dated August 12, 1988, ICSID Reports.
    18. Vivendi v. Argentina, Decision on Annilment, 3 July 2002, 41 ILM (2002) 1135.

     

    - Documents

    1. ILC, Summary Records of the 1478th Meeting, (12 May 1978), Yearbook of the International Law Commission, 1978.

  • Receive Date 07 November 2022
  • Revise Date 13 March 2023
  • Accept Date 06 April 2023