Diplomatic Protection under International Investment Treaties

With the rise of investment treaties, investor-state arbitration became the main solution to adjudicate the investment disputes and therefor diplomatic protection claims have declined in numbers. Most investment treaties also provide that each treaty party can bring a state- state arbitral claim against another treaty party concerning disputes about the interpretation or application of the treaty. Furthermore, home state of investor can bring a diplomatic protection claim for violations suffered by it's nationals against the host state. As there is an applicable investment treaty between the dispute's parties, this kind of diplomatic protection claims is subject to distinct rules and prerequisites, governed by the treaty rather than by customary international law. A peculiar focus is placed hereby on the necessity to exhaust local remedies before proceedings may be initiated and on mixed claims that entail espoused claims as well as claims for an own and direct violation of the state.