The Interpretation of Consent to ICSID Arbitration Contained in Domestic Investment Laws

Consent to ICSID jurisdiction may be given in different ways. One option is for the host state to offer its consent to ICSID by way of its national legislation. The aim of this article is to discuss how a domestic provision granting jurisdiction to ICSID ought to be interpreted. The article first describes the requirements for consent to ICSID arbitration and examines the specific challenges posed by domestic law clauses that grant jurisdiction to ICSID. It then analyses consent clauses contained in investment laws of several states, with reference to relevant arbitral decisions. Finally, it turns to the issue of interpretation of such consent clauses. In this regard, the article discusses the possible role that the IDC ‘Guiding Principles’ on unilateral declarations of states of 2006 might play in interpreting domestic provisions containing an offer to arbitrate before ICSID.