Investor Presentaiton

157 least do not preclude, the assistance of an investor's home State in the event of a host State's refusal to pay. For example, the above- mentioned agreement between Bosnia and Herzegovina and San Marino allows a Party to exercise diplomatic protection if "the other Contracting Party should fail to abide by or to comply with any award rendered by an arbitral tribunal" (Article 10.4). The Colombia-Japan BIT (2011) envisages a possibility of State-State proceedings in these situations: "2. If the disputing Party fails to abide by or comply with an award, upon a request of the Contracting Party other than the disputing Party, an arbitration board in conformity with Article 24 [on State-State arbitration] may be established. The requesting Party may seek in such proceedings: (a) a determination that the failure to abide by or comply with the final award is inconsistent with the obligations of this Agreement; and (b) a recommendation to the disputing Party to abide by or comply with the award." There are examples when home States have suspended advantages otherwise available to non-complying States and have exerted diplomatic pressure." 187 Contracting State shall have failed to abide by and comply with the award rendered in such dispute." (Article 27(1)). 187 In March 2012, the United States suspended application of its generalized system of tariff preferences (GSP) to Argentina. The United States' GSP scheme allows exporters from eligible countries to pay lower customs duties on their exports to the United States. The US Government explained that the GSP benefits will be suspended until Argentina honours the outstanding arbitral awards rendered against it in favour of US claimants. UNCTAD Series on International Investment Agreements II

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