An Analytical Study on International Commercial and Investment Arbitration

Abstract

With an emphasis on their distinctions and uses, this article offers a thorough analysis of international commercial and investment arbitration. A popular technique for settling disagreements resulting from cross-border business dealings, particularly those involving contracts between companies in various nations, is international commercial arbitration. It offers both efficiency and flexibility, which is why arbitration clauses are commonly included in contracts. Conversely, disputes between foreign investors and host governments, often stemming from breaches of investment treaties, are typically settled through investment arbitration, also known as Investor-State Dispute Settlement (ISDS). Investors can seek remedy through international tribunals and avoid national courts by using this type of arbitration. The article examines the legal foundations that regulate these procedures, such as public international law treaties for investment arbitration and the New York Convention for commercial arbitration. The role of organizations like the International Centre for Settlement of Investment Disputes (ICSID) in facilitating these arbitrations is also discussed.