The Nature of Investor-State Arbitration Dispute and its Role in the Interpretation of Bilateral Investment Agreement Provision

Abstract

Bilateral international investment agreements are the main driving force of international investment law. Depending on the complexity of investment relations, the dispute often arises between the foreign investor and the host state. In this case the most effective dispute resolution mechanism is an international arbitration. The challenge of the dispute is the vague provisions of the investment agreement,  based on which the dispute should be resolved.  Therefore, within the arbitration competence will be the interpretation of the provision. In this case the greatest difficulty is the scope of discretionary powers of the tribunal, as it may not exceed the competence of the state and has to protect the foreign investor's interests properly. Through the presented article is demonstrated the nature of the Investor-State Investment Arbitration Dispute and the role of the Arbitration Tribunal in the interpretation of the Bilateral Investment Agreement Provisions.