International Arbitration

Sovereign Rights to Natural Resources as a Basis for Denouncing International Adjudication of Investment Disputes: A Reflection on the Tanzanian Approach

As an essential outcome of strengthening the state control over natural wealth and resources, Tanzania has brought natural resource contracts into the purview of its domestic legal system. In doing so, some countries have exercised their sovereign rights to natural resources as the basis for denouncing international adjudication of investment claims based on such contracts. Indeed, biases perceived by Tanzania concerning international arbitration fora have played a great role in bringing natural recourse contracts into the purview of Tanzanian legal system. The goal of the reforms is to mitigate such partialities through using domestic dispute resolution mechanisms.

Hegemony in Investor State Dispute Settlement: How African States Need to Approach Reforms – A Response

In the opinion of this contribution, African States must be more radical in their approach to investment treaty and ISDS reforms. First, they must retain the role of domestic courts in the resolution of investment disputes in line with their national constitutions. Second, where the case for an international dispute settlement mechanism is made, they must consider a state-state trade and investment dispute settlement bodies at the regional and continental levels for all transnational business disputes. Appeals from domestic courts could lie before regional appellate bodies and from a regional appellate to a continental dispute settlement body. This should provide assurance to investors and other business entities that their disputes can and must be resolved within the African continent.