Foreign investments are often made by means of a contract between the investor and an entity of the host governments. The article discusses how treaty-based tribunals approach disputes that arise out of such contracts.
International arbitration is increasingly recognized as a transnational system of justice, if not a genuinely autonomous legal order, sometimes labeled as the arbitral legal order. This evolution, however, continues to generate robust controversies on the extent of autonomy of international arbitration from national legal systems and the role, if any, that the seat of the arbitration should have over the arbitral process.
The role of national courts in international arbitration is a relatively well defined concept. National courts may intervene at the end of the arbitral process for purposes of the enforcement or review of an arbitral award; they may also intervene during the arbitral process, most frequently to assist the arbitral process, for example in relation to the constitution of the arbitral tribunal. Opinions differ, however, as to the extent to which national courts can and should interact with the arbitral process, and whether national court decisions rendered in relation to the arbitral process should be given transnational effect.