investor-state arbitration

Investor-state arbitration is a legal process that resolves disputes between foreign investors and a country's government. When an investor believes a country's actions — such as changing laws or regulations — unfairly harm their investment, they can bring a case to an independent arbitral tribunal. This process offers a neutral platform outside the national courts, aiming to ensure fair treatment and protect investments. It helps promote international investments by providing a clear, efficient method to settle disagreements without escalating to diplomatic conflicts or lengthy court battles.