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Applicable law in international investment disputes
Download This ArticleSead Mehović
This work is licensed under a Creative Commons Attribution 4.0 International License.
Abstract
This paper addresses the legal uncertainty surrounding how arbitral tribunals determine applicable law in investor–state disputes. The research aims to clarify how tribunals balance investor protections with host state regulatory interests by analyzing the interaction between domestic and international legal frameworks. Methodologically, the study uses qualitative content analysis of key International Centre for Settlement of Investment Disputes (ICSID) and non-ICSID cases, including Gami Investments Inc. v. Mexico (2004) and Glamis Gold, Ltd. v. The United States of America (2009), supported by doctrinal sources such as Schreuer (2007) and Coop and Ribeiro (2008). The findings reveal significant inconsistency in the application of domestic and international law, with some tribunals favoring a dual approach, while others prioritize international standards, particularly under bilateral investment treaties (BITs). The study concludes that the absence of a clear legal hierarchy contributes to fragmented decision-making. The paper’s relevance lies in its call for harmonized interpretative guidelines to increase predictability in investment arbitration and strengthen coherence in the application of legal norms.
Keywords: Arbitration Tribunals, Applicable Law, International Law, National Law, Investment Disputes, BITs, Customary International Law, Legal Uncertainty, Legal Principles
Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.
Declaration of conflicting interests: The Author declares that there is no conflict of interest.
JEL Classification: F21, K33, K41
Received: 03.04.2025
Revised: 18.06.2025; 18.08.2025
Accepted: 25.08.2025
Published online: 26.08.2025
How to cite this paper: Mehović, S. (2025). Applicable law in international investment disputes. Corporate Law & Governance Review, 7(3), 113–119. https://doi.org/10.22495/clgrv7i3p11
