In Asia, the traditional options available to foreign investors who cannot amicably settle disputes with governments or local authorities are often unattractive. The host state's own courts may well be perceived as prejudiced against foreign investors, while the host state will be immune from most actions in courts of other countries. International arbitration is a popular alternative to the courts, offering neutrality and enhanced enforceability. However, arbitration traditionally requires the prior agreement of the investor and the host state, and this will not always be present, especially where the two parties have no previous contractual relationship.
Modern investment treaties can offer an effective solution to these difficulties. That solution is neutral international arbitration which -...
