Investment Treaty Arbitration

The foreign direct investment (FDI) is skyrocketing with the globalizing world and hundreds of millions worth cross-border investments are initiated across the world every day. This article intends to discuss the legal protection for these foreign investments. National laws of some states intend to protect foreign investments as it can help to develop the local economy but the primary problem is the process of arbitration for recovering losses. With the establishment of the International Centre for Settlement of Investment Disputes (ICSID) arbitration, the companies and international business lawyers can address this issue efficiently. For example, Company X starts the business in the USA and over time decides to expand overseas. Accordingly, they decide to start an operation in a completely new jurisdiction with its own laws and regulations. Their investments are poured into this new company and their operation was very successful. Nevertheless, the usual problem for