Like any company it’s even difficult for a State to impose its own national Court face to another State if they want a durable relationships on equal terms.

Therefore many States have always use arbitration to resolve their disputes with other States. In some countries the State accepts even arbitration in matters as taxation, land registry, loans, grants, aid to developing countries, etc….

The latest development happens in international relations in material aid to developing countries. Fortunately cultural or economic agreements, MFN clauses (Most Favored Nation) and BITs (Bilateral Investement Treaties) are now often with an arbitration clause in case of litigation between both parties.

The Institute of Arbitration has an important role as neutral instance for the sake of no dependence neither from the business lobbies, nor from one State. The accordance of the Standard Dispute Rules with the Arbitration Law is not limited to one country or State but depends of the seat of arbitration.

So that the conflict settled by arbitration shall be fiscally neutral parties chosen often the seat of arbitration different from the parties’ countries or in a country fully ensuring this neutrality.

This is thee most used arbitration clause between States :

Any dispute shall be settled at Geneva by the Institute of Arbitration (www.euro-arbitration.org) according to the Standard Dispute Rules (SDR).

This doesn’t prevent the hearings are by videoconference or take place elsewhere than the place of arbitration (e.g. in Brussels).