Investor-state disputes

Investor-state disputes occur when a company or individual from one country believes that a government’s actions have unfairly harmed their investment, such as through expropriation or unfair regulation. These disputes are typically resolved through international arbitration rather than domestic courts. The purpose is to protect investors from arbitrary government decisions while balancing the nation’s sovereignty. Such disputes can be complex, involving legal and economic considerations, and can influence a country’s investment climate and policy decisions.