Investor Presentaiton
158
INVESTOR-STATE DISPUTE SETTLEMENT: A SEQUEL
Enforcement procedures. Awards rendered under the ICSID
Convention are subject to its enforcement provisions. To facilitate
enforcement, the ICSID Convention requires that each Contracting
State 188 treat pecuniary obligations in awards rendered under the
Convention as if they were final judgments of the courts of that
State. The annulment procedure described in section II.Q.2 above is
the only way to challenge an ICSID Convention award. The a-
national nature of ICSID Convention arbitration means that a
disputing party may not challenge an award any further after losing
its application for annulment.
With respect to investment treaty awards rendered outside the
ICSID Convention (including awards issued under the ICSID
Additional Facility Rules 189), the 1958 New York Convention on
Recognition and Enforcement of Arbitral Awards serves as the main
tool to facilitate enforcement. It allows eligible arbitral awards to be
enforced in any of the 149 States that are parties to the Convention.
The New York Convention provides that each State party must
recognize and enforce arbitral awards rendered outside its territory.
Most States have made a declaration that they will apply the
Convention only to the recognition and enforcement of awards made
in the territory of another Contracting State (i.e., not any third
State). Thus, most non-ICSID Convention arbitrations are sited in a
New York Convention State in order to facilitate enforcement.
Indeed, some investment treaties contain a requirement that the
arbitration be sited in a State party to the New York Convention. 190
188
One hundred and forty-nine States had ratified the Convention as of
August 2013.
189 See section II.D above.
190 For example, the Colombia-Korea FTA provides: "If the disputing
parties fail to reach an agreement, the tribunal shall determine the place in
accordance with the applicable arbitral rules, provided that the place shall
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