Kristina Stevanović

DOI Number
First page
Last page


International arbitration emerged as a response to cross-border trade and foreign investments. It is an instrument which enables the uninterrupted flow of foreign capital which has a significant impact on the national economy, particularly considering that arbitral awards are enforced in national jurisdictions. The profit-oriented economic trend and its impact on individual states is even more visible in international investments, given that the foreign investor who operates on the territory of a Host State is included not only in economic but also in social affairs of that State. This poses a challenge: how should a State preserve national interests? Referring to the relevant provisions of the New York Convention (1958) and the ICSID Convention (1965), the author elaborates on the idea that public policy may be used in the enforcement stage as justification for non-compliance with the rendered arbitral award. The author introduces relevant arbitration practice that has challenged the interpretation of Article 54 of the ICSID Convention, and analyzes the impact it has had on the ICSID system.


international investment arbitration, ICSID, public policy

Full Text:



Bermann, G. A., (2020). Understanding ICSID Article 54, ICSID Review-Foreign Investment Law Journal, Vol. 35., No. 1-2., 2020, pp. 311-344

Buchanan, M. A., (1988). Public policy and international commercial arbitration, American Business Law Journal, Vol. 26., No. 3., pp. 511-532

Donovan, D. F., (1995). International commercial arbitration and public policy, New York University Journal of International Law and Politics, Vol. 27., No. 3., 1995, pp. 645-658

Gibson, C. S., (2008). Arbitration, civilization and public policy: Seeking counterpoise between arbitral autonomy and the public policy defense in view of foreign mandatory public law, Penn State Law Review, Vol. 113., 2008, pp. 1227-1267

Gomez, K. F., (2011). Latin America and ICSID: David versus Goliath, Law & Business Review of the Americas, Vol. 17., No. 2., 2011, pp. 195-230

Goodman, C. L., (2007). Uncharted Waters: Financial Crisis and Enforcement of ICSID Awards in Argentina, University of Pennsylvania Journal of International Economic Law, Vol. 28., 2007, pp. 449-485

Kasenetz, E. D., (2009). Desperate Times Call for Desperate Measures: The Aftermath of Argentina's State of Necessity and the Current Fight in the ICSID, George Washington International Law Review, Vol. 41, 2009, pp. 709-747

Poon, N., (2012). Striking balance between public policy and arbitration policy in international commercial arbitration, Singapore Journal of Legal Studies, No. 1., 2012, pp. 185-195

Schneiderman, D., (2000). Investment rules and the new constitutionalism, Law & Social Inquiry, Vol. 25., No. 3., 2000, pp. 757-787

Schreuer, C. H., (2009). The ICSID Convention: a commentary, Cambridge University Press.

Shan, W., (2006). From North-South divide to private-public debate: revival of the Calvo Doctrine and the changing landscape in international investment law, Northwestern Journal of International Law & Business, Vol. 27., No. 3., pp. 631-664

Trakman, L. E., (2018). Aligning state sovereignty with transnational public policy, Tulane Law Review, Vol. 93., No. 2., 2018, pp. 207-268

International Conventions

Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention), 1965

United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention), New York, 1958;

Vienna Convention on the Law of Treaties, Vienna, 1969, UN Treaty Series, vol. 1155, available at:



  • There are currently no refbacks.

ISSN 1450-5517 (Print)
ISSN 2406-1786 (Online)