Consent To Arbitrate In Investment Arbitration

Introduction

Arbitration is an alternative dispute resolution method based on consent of the parties, regardless of whether it is a commercial or investment arbitration. A dispute may be brought to arbitration only where the parties have consented to arbitration. In commercial arbitration, the parties consent to arbitration through the execution of an arbitration agreement as a separate agreement, or as an arbitration clause within the underlying contract. In an investment arbitration where the parties are always a state (or a state entity) on the one side, and a foreign investor on the other, the parties must have consented to arbitration through an arbitration agreement, or through other methods, which will be explained, below.