Assigning Responsibility to States in the ICSID Arbitration Procedure

Document Type : academic

Authors

1 Assistant Professor, Islamic Azad University, Tehran Central Branch, Faculty of Law

2 PhD Candidate in Private Law, Islamic Azad University, Tehran North Branch

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.

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History

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

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