Recognition And Enforcement Of ICSID Arbitral Awards

Based on the Convention on the Settlement of Investment Disputes Between States and Nationals of Other States(Hereinafter referred to as the Washington Convention), ICSID arbitration mechanism provides a reasonable solution for international investment disputes involving sovereign states. While recognition and enforcement of arbitral award is one of the core issues of international commercial arbitration system. It’s noted that there is a full self-contained mechanism on the recognition and enforcement of ICSID arbitral awards, which is different from the New York Convention. Although most ICSID arbitral awards have been complied with and fulfilled by failed respondent states automatically and voluntarily, there exist some problems in judicial practice. Due to different understandings of relevant provisions in the Washington Convention and lack of research on recognition and enforcement mechanism of ICSID arbitral awards, the enforcing third state tries to examine the ICSID arbitral awards with its domestic law and public policy, confuses the separate stages of recognition and enforcement of the ICSID arbitral awards, and refuse execution of the ICSID arbitral award by reason of immunity principle of the state and its property in the national law. For this purpose, it’s recommended that Administrative Council of ICSID should issue official interpretation on the meaning and application of the Washington Convention so that private investors and failed respondent states follow the rules on abiding by and implementing ICSID arbitral awards. In addition, ICSID contracting party states should enact domestic law matching with the Washington Convention as soon as possible, which makes it clear and convenient to the recognition and enforcement of ICSID arbitral awards in domestic courts.As an ICSID contracting party, China will be more frequently involved in ICSID arbitral awards as a host country or a home country in future. It is thus that problems on the recognition and enforcement of ICSID arbitral awards have to be considered. By investigation of judicial practice on recognition and enforcement of ICSID arbitral awards in relevant countries, it is necessary for our country to research on review criteria, the difference between recognition and enforcement stages and the impact of sovereign immunity on ICSID arbitral awards, so as to formulate matched domestic law to implement the Washington Convention as soon as possible.