The ICSID Tribunals in Deciding International Investment Corruption Cases: Possible Solutions

Abstract

Corruption issues have attracted increasing attention in international investment law studies and practice in recent years. When confronted with the corruption defenses invoked mainly by host states, some ICSID tribunals decided to decline the jurisdiction. However, part of the arbitral jurisprudence has aroused strong criticism. ICSID tribunals are legitimately supposed to exercise the jurisdiction and are lawfully obliged to investigate the nature of corrupt activities, and strike the balance of interests between the disputing parties. It is preferable to strengthen the collaborative interaction between ICSID and the domestic anti-corruption enforcement authorities to combat international investment corruption. The existing treaties (or specific treaty provisions) to combat corruption in international business transactions and the requirement for international cooperation, as well as domestic anti-corruption enforcement legislation, have laid a solid legal foundation for the establishment of such an anti-corruption coordinative mechanism between the ICSID and domestic corruption regulatory authorities on a global level.