XI
Article IX (Settlement of Disputes Between One Party and a Na- tional or Company of the Other Party) Article IX sets forth several means by which disputes brought against a Party by an investor (specifically, a national or company of the other Party) may be resolved. Article IX procedures apply to an ‘‘investment dispute,’’ which is any dispute arising out of or relating to an investment authoriza- tion, an investment agreement, or an alleged breach of rights con- ferred, created, or recognized by the Treaty with respect to a cov- ered investment. In the event that an investment dispute cannot be settled ami- cably, paragraph 2 gives an investor an exclusive (with the excep- tion in paragraph 3(b) concerning injunctive relief, explained below) choice among three options to settle the dispute. These three options are: (1) submitting the dispute to the courts or ad- ministrative tribunals of the Party that is a party to the dispute; (2) invoking dispute-resolution procedures previously agreed upon by the national or company and the host country government; or (3) invoking the dispute-resolution mechanisms identified in para- graph 3 of Article IX. Under paragraph 3(a), the investor can submit an investment dispute to binding arbitration 3 months after the dispute arises, provided that the investor has not submitted the claim to a court or administrative tribunal of the Party or invoked a dispute resolu- tion procedure previously agreed upon. The investor may choose among the International Centre for Settlement of Investment Dis- putes (ICSID) (Convention Arbitration), the Additional Facility of ICSID (if Convention Arbitration is not available), ad hoc arbitra- tion using the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL), or any other arbitral in- stitution or rules agreed upon by both parties to the dispute. Before or during such arbitral proceedings, however, paragraph 3(b) provides that an investor may seek, without affecting its right to pursue arbitration under this Treaty, interim injunctive relief not involving the payment of damages from local courts or adminis- trative tribunals of the Party that is a party to the dispute for the preservation of its rights and interests. This paragraph does not alter the power of the arbitral tribunals to recommend or order in- terim measures they may deem appropriate. Paragraph 4 constitutes each Party’s consent to the submission of investment disputes to binding arbitration in accordance with the choice of the investor. Paragraph 5 provides that any non-ICSID Convention arbitration shall take place in a country that is a party to the United Nations Convention on the Recognition and Enforcement of Arbitral Awards. This provision facilitates enforcement of arbitral awards. In addition, in paragraph 6, each Party commits to enforcing ar- bitral awards rendered pursuant to this Article. The Federal Arbi- tration Act (9 U.S.C. 1 et seq.) satisfies the requirement for the en- forcement of non-ICSID Convention awards in the United States. The Convention on the Settlement of Investment Disputes Act of 1966 (22 U.S.C. 1650–1650a) provides for the enforcement of ICSID Convention awards.
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