Inter-country business implies dealing properly with local juridical bodies complying with legal and regulatory conditions. Among various dispute resolution methods arbitration is considered to be an efficient basis for a successful risk mitigation scheme.
Clear and well-defined dispute resolution clause considering the key aspects of investments for inter-country deals from the very beginning provides parties an opportunity to receive protection of international investment treaties.
Aforementioned makes arbitration a key pillar in developing and implementing inter-country business. Investment treaty planning, clear and structured arbitration clause form a solid core for future dispute resolution.
Arbitration Clauses
Arbitration as a dispute resolution form appeared to be chosen in majority of inter-country deals in various segments such as technology, telecommunication, infrastructure and energy.
Litigation includes a reputation risk and complicity of juridical proceedings. Commercial parties prefer keeping confidentiality, avoiding a strict procedures order and having voice at the arbitrational tribunal. Arbitration’s chief attraction is a guaranty of unprejudiced consideration and enforcing power of award all around the world due to the New York Convention.
Arbitration is possible only under conditions of mutual agreement between the parties. Adding a well-drafted and thorough arbitration clause to the contract gives it an obligatory force and completes the linchpins of the agreement.
A considered and properly patterned arbitration scheme from the start receives a crucial meaning during the dispute resolution process and can impact the efficient and prompt positive result of future dispute. A simpler procedures speed up resolving the arguments and coming back to work or finishing business relationship in a peaceful way.
On the other hand, inadequately filed arbitration clause regardless to any planning and mitigating the risks will cause pecuniary and time losses. Moreover, equivocacy and omissions can give an opportunity for a satellite litigation which will decelerate the case. Some proceedings being held under amiss jurisdiction, having a validity issues of the arbitration led to national court resolutions, which lasted years.
Investment Treaty Planning
All possible measures in consideration of a deal insuring its clear and beneficial structure should be accomplished before the final approval of the contract to be a subject of investment treaties protection. Otherwise, it would be too late to implement any changes.
Investment treaties are signed between two or more parties to develop regulations to protect investments in their country made by other treaty countries. This protection measures are given to real estate, infrastructure investments, shareholdings, bonds etc.
Host states develop different standarts of protection to ensure the protection against expropriation, discrimination and prejudiced analysis of evidences of the case.
If the host state infringes the laws paying taxes improperly, adds counterproductive amends to the regulations, counterfeit licenses etc, influenced party may raise a lawsuit, which may be resolved by arbitration.
Today risk mitigation is becoming streamlined due to global network of multiple investment treaties between countries worldwide. The availability of protection measures for inter-country treaties is as good as gold for parties who want to protect their investment projects abroad.
What we can do for you
Our experts in inter-country deals and investment will sure the most circumspect contract clause and effectual dispute resolution strategy to mitigate the risk and protect the business in case if dispute arises.
