There is a bilateral investment agreement between Sweden and Saudi Arabia, but the rules differ if there is a dispute between the contracting parties (Sweden and Saudi Arabia), on the one hand, and a dispute between a state and an investor. On the other hand. What is the difference and why do you think the rules differ?
Contracting parties: art. 10 (1) : “… (disputes) shall as far as possible be settled amicably through negotiations between the Governments of the two Contracting Parties” Art 10(2): “If a dispute cannot thus be settled within six months following the date on which such negotiation was requested by either Contracting Party, it shall upon the request of either Contracting Party be submitted to an arbitration tribunal.” State/investor: Art. 11 (1): “Disputes concerning investments between a Contracting Party and an investor of the other Contracting Party shall be amicably settled as far as possible.” Art 11(2): “If the dispute cannot thus be settled, the investor may choose to submit it for resolution either: a) to any competent court or administrative tribunal of the Contracting Party, party to the dispute; or b) in accordance with any applicable, previously agreed dispute settlement procedure; or c) to international arbitration as follows: i) to the International Centre for the Settlement of Investment Disputes (ICSID), established under the Convention on the Settlement of Investment Disputes between States and Nationals of other States, opened for signature at Washington, D.C. on 18 March 1965 (the Washington Convention), or ii) to an ad hoc tribunal set up under the current Arbitration Rules of the United Nations Commission on International Trade Law (the UNCITRAL Rules). The appointing authority under the said rules shall be the SecretaryGeneral of ICSID.” 11(3): “The dispute shall not be submitted to international arbitration until six month have elapsed from the date on which the Contracting Party received written notification of the investor’s intent to do so. Moreover, a dispute shall not be submitted to international arbitration if the investor has submitted the same dispute to a local court of that Contracting Party.”
Comments