Host States and State-State Investment Arbitration: Strategies and Challenges

Murilo Otávio Lubambo de Melo


The article aims at discussing whether State-State arbitration in foreign investments is an available strategy to host States. It revises the language of investment treaty provisions and inter-state arbitral awards and then analyses cases and treaty-making practice. This article concludes that the possibility of State-State arbitration is not a backlash. It constitutes an additional opportunity for host States to advance their understanding of the treaties and to provide balance to investment treaty commitments. While State-State arbitration may be a viable strategy, there are some challenges that need to be overcome. The definition of the term dispute, the obligation to consult on the meaning of provisions and the establishment of a clear hierarchy between State-State awards in relation to investor-State awards are some of the ways forward.


International Investment Law; State-State Arbitration; Investment Treaties; Host States; BITs.

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ISSN 2236-997X (impresso) - ISSN 2237-1036 (on-line)

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