1. Both parties must agree to submit their disputes to the jurisdiction of the center.
2. Investment disputes must be disputes between the host country's contracting state (or its branches or institutions) and citizens of another contracting state. Disputes must be legal disputes directly caused by investment. In addition, the jurisdiction of the center is compulsory. On the one hand, the investment disputes under the jurisdiction of the center completely exclude the possibility of any party submitting the disputes to any international or domestic judicial procedures; On the other hand, once both parties agree to submit the dispute to the jurisdiction of the center, neither party can unilaterally cancel the agreement.
What is the International Centre for Settlement of Investment Disputes?
ICSID (International Center for Settlement of Investment Disputes) is a high-level international commercial arbitration institution, which mainly hears disputes between international investors, especially those between the government and investors from other countries. The effectiveness of its award can be enforced without being recognized by the domestic courts of the countries concerned, so it can effectively protect the legitimate rights and interests of international investors.
The Convention on the International Center for Settlement of Investment Disputes is a multilateral treaty jointly formulated by the executive directors of the International Bank for Reconstruction and Development (World Bank). The Convention was signed on March 65, 2008 and entered into force on October 65, 2004/KLOC-0.
The purpose of this convention is to eliminate the main obstacles caused by non-commercial risks and the lack of professional international methods to resolve investment disputes, and to avoid affecting the free international flow of private investment. The Convention holds that the International Center for Settlement of Investment Disputes is a fair international forum, which promotes the settlement of legal disputes between qualified parties through mediation or arbitration procedures. Only on the basis of the consent of all parties, will they resort to the International Centre for Settlement of Investment Disputes.