Investor Presentaiton
C. Waiting periods and amicable settlement
Traditionally, IIAs provide for an attempt to resolve the dispute
amicably between the disputing parties as a preliminary step before
the formal procedure starts. A treaty will often contain a general
provision that expresses a preference for amicable settlement, as
illustrated by Article 9(1) of the China-Germany BIT (2003):
"Any dispute concerning investments between a Contracting
Party and an investor of the other Contracting Party should
as far as possible be settled amicably between the parties in
dispute."
Specific approaches to, and even to some extent the rationale
for, this procedural step vary.
1. Waiting or "cooling-off" period
Some treaties provide for a waiting period, also called a
"cooling-off" period, which must elapse before the arbitration
procedure can start. There is no requirement that the disputing
parties engage in negotiations. It is more of a last chance for them to
consider whether they want to pursue the arbitration. The China-
Germany BIT (2003) illustrates this approach:
"If the dispute cannot be settled within six months of the date
when it has been raised by one of the parties in dispute, it
shall, at the request of the investor of the other Contracting
State, be submitted for arbitration." (Article 9(2))
A six-month waiting period is common in IIAS, but it can also
be shorter or longer: for example, three months as in the Chile-
Netherlands BIT (1998) or 12 months as in the Lebanon-Slovakia
BIT (2009).
UNCTAD Series on International Investment Agreements II
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