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Investment Arbitration: On The Availability Of The State Counterclaim

Abstract

This paper explores the availability and significance of state counterclaims in international investment arbitration, a mechanism typically perceived as favouring investors. While investor-state dispute settlement (ISDS) provides foreign investors with powerful legal recourse, it has led to concerns over the asymmetry in investor-state relations, often perceived as skewed against host states. By allowing states to file counterclaims, a more balanced and sustainable arbitration framework can be achieved, discouraging baseless claims and promoting fairness.

The analysis draws on arbitration rules of major tribunals, including the ICSID and UNCITRAL frameworks, and reviews notable cases such as Metal-Tech v. Uzbekistan, Al-Warraq v. Indonesia, and Perenco v. Ecuador to illustrate how tribunals handle state counterclaims and the associated legal hurdles. The paper emphasizes that for a counterclaim to be admitted, it must align with the agreement to arbitrate, meet jurisdictional requirements, and be supported by the applicable treaty's provisions.

The research concludes that while state counterclaims are theoretically permissible under current arbitration rules, their practical application remains constrained by treaty language and procedural norms. Allowing counterclaims more explicitly could deter opportunistic claims by investors and foster a more equitable ISDS system.

Bahasa Abstract

Tulisan ini membahas ketersediaan dan pentingnya state counterclaim dalam arbitrase investasi internasional, suatu mekanisme yang umumnya dianggap lebih menguntungkan investor. Meskipun penyelesaian sengketa investor-negara (ISDS) memberi investor asing akses hukum yang kuat, hal ini menimbulkan kekhawatiran mengenai ketidakseimbangan dalam hubungan investor-negara, yang sering dianggap merugikan negara tuan rumah. Dengan memungkinkan negara mengajukan state counterclaim, kerangka arbitrase yang lebih seimbang dan berkelanjutan dapat tercapai, mengurangi klaim yang tidak berdasar dan mempromosikan keadilan.

Analisis ini menggunakan aturan arbitrase dari tribunal-tribunal utama, termasuk kerangka kerja ICSID dan UNCITRAL, serta meninjau beberapa kasus penting seperti Metal-Tech v. Uzbekistan, Al-Warraq v. Indonesia, dan Perenco v. Ecuador untuk menggambarkan bagaimana tribunal menangani state counterclaim dan kendala hukum terkait. Tulisan ini menekankan bahwa agar state counterclaim dapat diterima, klaim tersebut harus sesuai dengan perjanjian arbitrase, memenuhi persyaratan yurisdiksi, dan didukung oleh ketentuan-ketentuan dalam perjanjian yang berlaku.

Penelitian ini menyimpulkan bahwa meskipun state counterclaim dapat dilakukan secara teoritis di bawah aturan arbitrase saat ini, penerapannya dalam praktik masih terbatas oleh bahasa perjanjian dan norma prosedural. Pengaturan state counterclaim secara lebih eksplisit dapat mencegah klaim oportunistik oleh investor dan mendorong sistem ISDS yang lebih adil.

References

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