Navigating Jurisdictional Expansion: An Analysis of ICSID's Role in Bolstering Foreign Investment Protection

Abstract

Under the Convention on the Settlement of Investment Disputes, the International Centre for Settlement of Investment Disputes (ICSID), affiliated with 165 member countries, holds exclusive jurisdiction over state-foreign investor disputes. ICSID arbitral tribunals frequently expand their jurisdiction and amplify protection for foreign investments through broad interpretation of jurisdictional conditions, enlarged application of the Most-Favored-Nation and Umbrella Clauses, and adaptability of the Fork-in-the-Road provision. This paper scrutinizes these strategies and underscores the tribunals' role in shaping investment protection while considering their impact on the delicate balance between international arbitration and local remedies. It concludes by advocating for a more balanced approach that respects local remedies while safeguarding foreign investment interests.