ARBITRAŽA IN TUJE INVESTICIJE

Is there a future for intra ex-YU investment disputes?
The Balkans between intra-EU and intra-ex-YU BITs

Filip Boras, Thomas Obersteiner

Many cross-border investments have been made in the countries of former Yugoslavia and there are more to come. In order to protect their investors abroad, all those countries have concluded broad Bilateral Investment Treaties among each other; the intra ex-YU BITs. If a host state violates one of the well-established treatment standards contained therein, an affected investor can file for arbitration. In most instances, investors have the choice to bring claims under the ICSID Convention, which prohibits any review of an arbitration award at domestic level. This is a desirable result for an investor, in view of the difficulties judiciary is facing in several states of former Yugoslavia. Surprisingly, however, intra ex-YU BITs are yet not used by investors in former Yugoslavia. This may change drastically in the near future. The investments between former Yugoslav states are made and continue to increase. Regrettably, in many cases, due to several factors such as corruption, injustice is made too. If clients were better informed on the possibility of solving their disputes with states through international investment arbitration, the so far overlooked intra ex-YU BITs could eventually come to life.