Investor-State Dispute Settlement (ISDS)
Under ACIA and individual BITs, investors are able to resolve their disputes with host states through international arbitration, including before International Centre for Settlement of Investment Disputes (ICSID) tribunals, under UNCITRAL rules or any other rules agreed upon in the contract.
For instance, investors can bring a claim under ACIA’s investor-state dispute resolution (ISDS) provision if the dispute arose out of a breach of the host state’s obligations under ACIA relating to the management, conduct, operation or sale of a covered investment.
ASEAN Member States have all ratified the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which provides a legal mechanism for the enforcement of awards that are not rendered under the auspices of ICSID. The ‘New York Convention’ requires the courts of contracting parties to give effect to an agreement to arbitrate in a matter covered by an arbitration agreement, and to recognise and enforce awards made in other states. The New York Convention marks a collective commitment to recognising and enforcing foreign rulings and arbitration awards, both between investors and state authorities and between private parties only.