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Department of Law and Human Rights,

University of Asia Pacific

trea

Submitted By:

Samiha Zaman : 171110

Farhana Parvin Aney
17111045
Nahli Islam : 1711100
Israt Jahan Ira : 171110
Yasir Arafat Himel : 1711
Mohammed Ashraful Ba
17111024

Internation
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Table of Contents:
Introduction……………………………………………………………………… 1
Summary of the Bi Lateral Treaties Made by Bangladesh…………………… 2-21
₪ Agreement between Bangladesh - Viet Nam BIT (2005)
₪ Agreement between Bangladesh – Uzbekistan BIT (2000)
₪ Agreement between Bangladesh- Netherlands BIT (1994)
₪ Agreement between Bangladesh – Korea republic of BIT (1986)
₪ AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF
TURKEY
AND THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF
BANGLADESH CONCERNING THE RECIPROCAL PROMOTION
AND PROTECTION OF INVESTMENTS
₪ AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF
INDIA AND THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF
BANGLADESH
₪ AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF
SINGAPORE AND THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF
BANGLADESH
₪ AGREEMENT BETWEEN THE GOVERNMENT OF THE DEMOCRAT1C
PEOPLE'S REPUBLJC OF KOREA AND THE GOVERNMENT OF THE
PEOPLE'S REPUBLIC OF BANGLADESH
₪ AGREEMENT BETWEEN THE GOVERNMENT OF MALAYSIA AND THE
GOVERNMENT OF THE PEOPLE'S REPUBLIC OF BANGLADESH
₪ TREATY BETWEEN THE UNITED STATES OF AMERICA AND THE
PEOPLE’S REPUBLIC OF BANGLADESH
₪ Agreement between the Government of the United Kingdom of Great Britain and
Northern Ireland and the Government of the People's Republic of Bangladesh
₪ Agreement between Bangladesh vs Romania bit 1987 Disputes between the
Contracting Parties,
₪ Agreement between Bangladesh and Thailand bilateral investment treaty 1988
₪ Agreement between Bangladesh – Indonesia Bilateral Investment treaty
₪ Agreement between Bangladesh and Iran Bilateral Investment Treaty

₪ Agreement between Bangladesh and Denmark BIT 2009

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₪ Agreement between Germany and Bangladesh BIT 1981

₪ Agreement between Philippines and Bangladesh BIT 1997
₪ Agreement between Turkey and Bangladesh BIT 1987
₪ Agreement between Austria and Bangladesh BIT 2000
₪ Agreement between Switzerland and Bangladesh BIT 2000
₪ Agreement between Bangladesh and Poland BIT 1997
₪ Agreement between Bangladesh – United Arab Emirates BIT, 2011
₪ Agreement between Bangladesh- Thailand BIT, 2002
₪ Agreement between Bangladesh-Italy BIT ,1990
₪ Agreement between Bangladesh- Japan BIT, 1998

ICSID……………………………………………………………………………. 21
Comparing with Treaties Made by Other Countries………………………… 22
Recommendation……………………………………………………………….. 23
Conclusion………………………………………………………………………. 25
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Prepared By Samiha Zaman : 17111026

Introduction:
In just over three decades the bilateral investment treaty has become one of the most
important legal instruments affecting private foreign investment. European countries
also entered into BIT with developing countries at this early 1960s work on the
protection and promotion of investments was in addition undertaken by the
organization economic co-operation and development.

In the post world war period many developing countries have come to rely on private
foreign capital, as well as technological and management skills, from capital
exporting countries. Private foreign investment has thus increasingly come to play an
integral role in the development process and BIT have served to establish the rules
according to which such investments could be safeguarded.

One major purpose of BIT is to create an incentive for new investments. It would be
incorrect to assume that this is its only function. BIT are concluded in the broader
framework of economic cooperation, and recently treaties explicitly state that their
applicability is not restricted to new investments made after entry into force of the
treaty but also extends to certain or all existing investments.

Legal rules protecting foreign property in fact influence the foreign investor in his
decision making has often been debated. The legal framework and its positive or
negative effect on facilitating a particular venture and ensuring compensation in the
event of expropriation will no doubt play a role in the decision of any would be
investor.

Summary of the Bi Lateral Treaties Made by

Bangladesh

Bangladesh - Viet Nam BIT (2005)

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ARTICLE7: settlement of investment dispute between a contracting party and an

investor of the other contracting party

 Dispute between one of the contracting parties and an investor of the others
contracting party on its investment shall be settled initially through negotiation
after submission of a written notification.
 if the dispute cannot be settled within 6 months following the date of the
written notification the dispute can be submitted as the investor may choose to
The domestic court base upon the territorial jurisdiction, Arbitral organization,
 The international center for settlement of investment disputes (ICSID), the
United Nations commission for international trade law (UNCRITRAL)
 Each Party shall execute them in accordance with its laws and the 1958 United
Nations Conventions 011 the Recognition and Enforcement of Foreign
Arbitral Awards (New York Convention), if the Contracting Parties arc
members of that Convention.

ARTICLE8: settlement of disputes between the contracting parties

 Can be settled through diplomatic channels.

 If not it should go to arbitral tribunal with in 2months.
 Otherwise by quest of each party the International Court of Justice shall
appoint a Chairman.
 The arbitral tribunal shall reach its decision& by majority of votes which
binding for both parties..

Bangladesh – Uzbekistan BIT (2000)

ARTICLE 9: Settlement of disputes between the contracting parties

 Can be settled through diplomatic channel within 6 months.

 . If not it should go to arbitral tribunal with in 2months.
 Otherwise by quest of each party the International Court of Justice.
 The arbitral tribunal shall reach its decision' by majority of votes which
binding for both parties.

ARTICLE10:
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For the settlement of investment dispute

 Set up by the convention on the settlement of investment dispute between

state and national of other state open for signature at Washington investor of
one on contracting parties shall have same rights as investors of other
contracting parties.

Bangladesh- Netherlands BIT (1994)

ARTICLE 9:

Each Contracting Party hereby consents to submit any legal dispute arising between
that Contracting Party and a national of the other Contracting Party concerning an
investment of that national in the territory of the former Contracting Party to the
International Centre for Settlement of Investment Disputes for settlement by

 Conciliation or arbitration under the Convention on the Settlement of

Investment Disputes between States and Nationals of other States opened for
signature at Washington.
 Article 25 (2) (b) of the Convention be treated for the purposes of the
Convention as a company of the other Contracting Party.

Bangladesh – Korea republic of BIT (1986)

ARTICLE 10:

Disputes between the Contracting Parties can be settled through

 Consultation or negotiation.
 It the disputes of agreement shall not settle by negotiations within 6 months, it
shall be upon the request of either contracting party submitted to arbitration.
 Within 3 months of receipt of a request both party shall appoint an arbitrator.
Contracting Party shall have informed the other Contracting Party that it
proposes to submit the dispute to an arbitral tribunal.
 The President of the International Court of Justice can take the necessary
appointments.
 The arbitral tribunal shall reach its decision by a majority of votes. Total
expenses shall be paid equally by the contracting parties.

Analysis

BIT the most difficult problem is probably striking the balance between details and
generalities. A more detailed wording of a treaty would tend to make it easier for
potential foreign investor to ascertain his rights.
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On the other hand in order to allow for some flexibility it may be necessary to leave
certain obligation is more general. Agreement should be proper negotiated and
consulted both the contracting parties.

The agreement of Bangladesh and Vietnam says that dispute shall be settled within 6
months but I desire that it will be settled within 3 months.

The agreement of Bangladesh and Uzbekistan says that dispute shall be settled within
2 months but I desire that it will be settled within 1 month.

The agreement of Bangladesh and Korea says that total expenses shall be paid equally
by the contracting parties but I desire that they need proper organization for this.

The agreement of Bangladesh and Netherland says that disputes can settlement by
conciliation or arbitration but I desire that dispute can be settled by negotiation also.

It is interesting however that these clause from very general statements of intent to
quite detailed provision setting forth the specific framework for such consulation.

Prepared By Farhana Parvin Aney : 17111045

AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF

TURKEY
AND THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF
BANGLADESH CONCERNING THE RECIPROCAL PROMOTION
AND PROTECTION OF INVESTMENTS ( signature in 2012)

ARTICLE 10: Settlement of Disputes Between One Contracting Party and

Investors of the Other Contracting Party.

 Negotiation among the parties within 6 months following the date of the
written notification the disputes can be submitted.
 If they will fail; the investor may choose
(a) The domestic court based upon the territorial jurisdiction, or
(b) Arbitral organization:
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(i) The International Center for Settlement of Investment Disputes (ICSID).

(ii) The United Nations Commission for International Trade Law
(UNCITRAL).
 If disputes related to the real estate property the competent court of territorial
jurisdiction will be settled the dispute.
 The arbitration awards shall be final and binding for all parties in dispute.

ARTICLE 11: Settlement of Disputes Between The Contracting Parties.

 Initially parties have 6 month for negotiation among themselves.

 If they fail; they will settled the dispute through arbitral tribunal following the
procedure of the International Court of Justice (ICJ). [Within two (2) months
of receipt of a request both Party shall appoint an arbitrator. If a Party fails to
appoint an arbitrator other Party may request the President of the International
Court of Justice to make the appointment. Those two arbitrators shall select a
third arbitrator as Chairman, who is a national of a third Country. If both
arbitrators cannot reach an agreement about the choice of the Chairman within
two (2) months, the ICJ will select him.]
 The tribunal shall have three 3 months to settled the dispute following the
provision of agreement, otherwise they can apply mechanism of The ICJ for
settlement of dispute.
 If all member of the arbitral tribunal shall not agree in one decision the
majority vote will be final & binding.
 Total expenses shall be paid equally by the Contracting Parties if the tribunal
doesn’t have other perception.

My point of view

The mechanism or procedure which involve in this treaty for settlement of dispute is
really good. It has the scope of Domestic Law, International Law and International
Arbitral Organization also.

AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF

INDIA AND THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF
BANGLADESH FOR
THE PROMOTION AND PROTECTION OF INVESTMENTS ( signature in
2009)

ARTICLE 9: Settlement of Disputes between an Investor and a Contracting

Party

 Initially parties have 6 month for negotiation among themselves.

 If it fail and both Parties agree to submitted the dispute in:
(1) Competent judicial arbitral or administrative bodies under domestic law;
or
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(2) International conciliation following Conciliation Rules of the United

Nations Commission on International Trade Law.
 Neither,(1) through the International Centre for the Settlement under the
Convention on the Settlement of Investment Disputes between States and
Nationals of other States, 1965; or (2) accordance the Arbitration Rules of the
United Nations Commission on International Trade Law, 1976.

ARTICLE 10: Disputes between the Contracting Parties

 Parties have 6 month for negotiation among themselves.

 If they fail; they will settled the dispute through arbitral tribunal following the
procedure of the ICJ.
 The arbitral tribunal have its own procedure to settled the dispute and shall
reach its decision' by majority of votes which binding for both parties.

My point of view

The mechanism or procedure which involve in this treaty for settlement of dispute is
standard one. It has the scope of Domestic Law, International Law, International
Convention and International Arbitral Organization also.

AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF

SINGAPORE AND THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF
BANGLADESH FOR THE PROMOTION AND PROTECTION OF
INVESTMENTS ( signature in 2004)

ARTICLE -7: Settlement of Investment Disputes Between a Contracting Party

and an Investor of the Other Contracting Party.

 To settled the dispute parties have 6 months for negotiation after giving the
written notice to the other of its intention.
 If the dispute cannot be resolved, unless the parties have otherwise agreed, the
dispute shall be submitted to the International Centre for Settlement of
Investment Disputes by conciliation or arbitration. Which established by the
Convention on the Settlement of Investment Disputes between the States and
Nationals of Other States opened for signature at Washington on 18 March,
1965.
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 The arbitral award shall be final and binding upon the parties to the dispute.

ARTICLE-8: Settlement of disputes between the Contracting Parties

 Dispute initially settled through diplomatic channels.

 If it is fail either Contracting Party will submitted the dispute to an arbitral
tribunal.
Such an arbitral tribunal shall follow the procedure of the ICJ.
 The arbitral tribunal shall reach its decision' by majority of votes which
binding for both parties.
 Total expenses shall be paid equally by the Contracting Parties if the tribunal
doesn’t have other perception.

My point of view

This treaty has the scope of negotiation, International Convention for Arbitration &
mechanism of The ICJ. But it has no option for any domestic law.

AGREEMENT BETWEEN THE GOVERNMENT OF THE DEMOCRAT1C

PEOPLE'S REPUBLJC OF KOREA AND THE GOVERNMENT OF THE
PEOPLE'S REPUBLIC OF BANGLADESH ON THE PROMOTION &
RECIPROCAL PROTECTION OF INVESTMENTS (signature in 1999)

Article: 7; Disputes between a Contracting Party and an Investor of the other

Contacting Party.

 Disputes shall be settled by conciliation within 6 months.

 If they will fail the investor shall be entitled to submit the case to the
competent court of the Contracting Party in the territory of which the
investment has been made.

Article 8: Disputes and Consultations between Contracting Parties.

 Disputes initially settled through diplomatic channels by consolation and will

make necessary arrangements for holding these consultations without delay.
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My point of view

This treaty only has the option of conciliation & domestic law, not any internationally
establish mechanism for dispute settlement. The International Arbitral Organization &
mechanism of The ICJ should be involved for settlement of dispute.

AGREEMENT BETWEEN THE GOVERNMENT OF MALAYSIA AND THE

GOVERNMENT OF THE PEOPLE'S REPUBLIC OF BANGLADESH FOR
THE PROMOTION AND PROTECTION OF INVESTMENTS ( signature in
1994)

Article 6: Settlement of Investment Disputes Between A Contracting Party And

an Investor
of The Other Contracting Party.

 Parties have 3 months for negotiation among themselves.

 If they fail, party will to submit to the International Centre for settlement the
dispute by conciliation or arbitration under the Convention on the Settlement
of Investment Disputes between States and Nationals of other States.
Accordance with Article 25(2)(b) the dispute will settled under the
convention.

ARTICLE 7 Settlement of Disputes Between The Contracting Parties

 Disputes initially settled through diplomatic channels.

 If it is fail either Contracting Party will submitted the dispute to an arbitral
tribunal following the procedure of International Court of Justice.

My point of view

This treaty doesn’t has the scope of any domestic law, which should be involve.

TREATY BETWEEN THE UNITED STATES OF AMERICA AND THE

PEOPLE’S REPUBLIC OF BANGLADESH CONCERNING THE
RECIPROCAL
ENCOURAGEMENT AND PROTECTION OF INVESTMENT (signature in
1986)

ARTICLE VII - SETTLEMENT OF INVESTMENT DISPUTES BETWEEN

ONE PARTY AND A NATIONAL OR COMPANY OF THE OTHER PARTY

 Initially parties have 6 months for conciliation and arbitration among

themselves.
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 Parties may go to the competent court under domestic law following territorial
jurisdiction.
 Parties also can submission the dispute in the Center, established by the
Convention on the Settlement of Investment Disputes Between States and
Nationals of other States ("Convention") for Conciliation or binding
arbitration following Article 25(2) (b).

ARTICLE VIII - SETTLEMENT OF DISPUTES BETWEEN THE PARTIES

CONCERNING INTERPRETATION OR APPLICATION OF THIS TREATY

 Dispute initially settled through diplomatic channels.

 If it is fail either Contracting Party will submitted the dispute to an arbitral
tribunal following the procedure of The ICJ.
 The arbitral tribunal shall reach its decision' by majority of votes which
binding for both parties. The Tribunal shall arrange necessary hearings, and a
final decision on the dispute within one year from the date of the formation of
the Tribunal.

The provisions of this both Article 7 & 8 shall not apply if the dispute arising under
the export credit, guarantee or insurance programs of the United States or under other
of insurance agreements pursuant to which the Parties have agreed to other means of
settling disputes.

My point of view

This treaty’s dispute settlement procedure is better but it has no scope of any
International Arbitral Organization.

Agreement between the Government of the United Kingdom of Great Britain

and Northern Ireland and the Government of the People's Republic of
Bangladesh for the Promotion and Protection of Investments ( signature in 1980)

ARTICLE 8: Reference to International Centre for Settlement of Investment

Disputes

 Contracting party initially within 3 months try to settled the dispute by

negotiation & arbitration.
 If they fail, party will to submit to the International Centre for settlement the
dispute by conciliation or arbitration under the Convention on the Settlement
of Investment Disputes between States and Nationals of other States.
Accordance with Article 25(2)(b) the dispute will settled under the
convention.
 Neither Contracting Party shall settle the dispute through diplomatic channels.
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ARTICLE 9: Disputes between the Contracting Parties

 Disputes initially settled through diplomatic channels.

 If it is fail either Contracting Party will submitted the dispute to an arbitral
tribunal under the observation of The ICJ. The tribunal settled the dispute
through its own mechanism.

My point of view

This treaty don’t involve any domestic & International Arbitral Authority for
settlement their dispute.

CRITICAL ANALYSIS ON SETTLEMENT OF DISPUTE ACCORDANCE

THIS 7 TREATY

For solving any kind of problem or dispute it is very important to discuses about the
issue among themselves. So that it is really appreciable that almost 90% treaty have
the stage of negotiation for settlement of dispute. And I think if the practice of
conciliation will be increase, it also being really helpful for parties.

It is really important in International Trade that the scope of settlement should be

broader, so that parties can chose the mechanism which gives them the absolute
solution of any issue. So the practice of domestic and International law should be
increase. The International Court of Justice has a big role in international trade.
Almost 95% parties practice the mechanism of ICJ for arbitration. The role of the
International Chamber of Commerce is really passive in case of dispute settlement,
which should be increase. The World Trade Organization (WTO) also has a good
mechanism system for dispute settlement, which should be involve in dispute
settlement of bilateral treaty.

Chart Title

ICJ

International Arbitral Organization

Domestic Law

Conciliation

Arbitration

Negotiation

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
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The practice of International Organization for arbitration rise in present days. Those
have developed mechanism to arbitration, like: The International Center for
Settlement of Investment Disputes (ICSID), The United Nations Commission for
International Trade Law (UNCITRAL), The London Court of International
Arbitration etc.

The International Centre for settlement the dispute by conciliation or arbitration under
the Convention on the Settlement of Investment Disputes between States and
Nationals of other States has a huge role in International Trade for arbitration.
Nowadays almost 70% treaty uses their mechanism for dispute settlement.

In this present days for developed mechanism of dispute settlement Bangladesh

should involve to the ISDS, or investor-state dispute settlement. It is a mechanism that
enables foreign investors to resolve disputes with the government of the country
where their investment was made (host state) in a neutral forum through binding
international arbitration.

Prepared By Nahli Islam : 17111003

Bangladesh vs Romania bit 1987 Disputes between the

Contracting Parties,

According to article 8 concerning the interpretation and application of the present

Agreement. It settled through negotiation . if they failed to negotiate then it comes
with arbitration tribunal . each contracting party appoint 2 arbitrator, a Chairman who
should be u citizen of third State, designated by the two Contracting Parties.
arbitrators are appointed within three months and the Chairman within five months,
from the date of the appointment . the arbitrators arc not appointed within the agreed
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period, the Contracting Party failing to appoint its arbitrator agrees that he would be
appointed by the Secretary general of the United Nations. If the two Contracting
Parties cannot reach agreement on appointment of the Chairman, they also agree that
he were appointed by the Secretary general of the United Nation arbritral tribunal
reach its decision on the basis of rule & gen principle of int. law.decision taken by
majority votes & its final.only contracting party can suits arbritral tribunal.

Bangladesh and Thailand bilateral investment treaty 1988

article 10 dispute between contarcting party concerning the interpretation or

application on agreement settled through consultation or negotiation. if it cant settled
within 6 month contractiong party submit arbitral tribunal. each party appoint 1
member & both select a national for 3 rd party as a chairman of tribunal. members
appointed within 3 moth & chairman within 4 month. If parties cant appoint the
chairman tthan the president of int. court of justice appoint the chairman. If the
absence of president , vice president or senior member of the icj can appoint the
charman. Arbitral tribunal reach its decision by majority vote & its binding to the
parties.

Bangladesh – Indonesia Bilateral Investment treaty

Article 8

Dispute settlement between investor of other contracting party & contracting party
concerning the investment of the latter of territory of the former be settled amicable
by consultation & negotiation. with investor concern the contracting party accept the
investment or or to int. arbitration conciliation. Investor of the territory of the former
contracting party to the international center for settlement of investment disputes for
settlement of conciliation or arbritration.
 13

Bangladesh and Iran Bilateral Investment Treaty

Dispute arise between the contracting party & investor shall primarily endaovour to
settle the dispute with amicable manner by negotiable & consultation. Arbitration
conduct with arbritration rules of the united nation commission on international
trade law.

Prepared By Israt Jahan Ira : 17111043

Agreement between Bangladesh and Denmark BIT 2009

This bi-lateral agreement has come into force on 27th February 2013.
Article 9 of this agreement deals the settlement of disputes between a contracting
party and an investor of other contracting party. According to this article, if any
disputes arise between a contracting party and an investor of other contracting party,
they will try to resolve it themselves first. If they are unable to resolve their dispute
within six months then there are some separate forums for resolving it and it is known
as international arbitration. The forums are: ICSID for settlement dispute by
arbitration under the Washington Convention 1965 or arbitration under UNCITRAL
or arbitration under ICC. According to Article 25(2)(b) of the Washington
Convention, investor of other contracting party is treated as national of other
contracting party. The parties shall have to submit written consent written agreement
for the purpose of settlement of the dispute by arbitration under any of these forums.
However, the decision is made by these forums, it will be considered as final and
binding upon the parties to the dispute.
Article 10 of this agreement deals the settlement of disputes between contracting
parties. It means the agreement between a contracting party and government of other
contracting party. According to this article, disputes between the contracting parties
concerning the interpretation or application of this agreement shall be settled by
negotiations. If the dispute cannot be settled within six months then it shall be
submitted to an arbitration tribunal upon the request of contracting parties. Such
arbitration shall be constituted with one arbitrator of each contracting party and the
appointed two arbitrators shall appoint a national of third state as the chairman.
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Arbitrators shall be appointed within 2 months from the date on which one
contracting party has informed other contracting party to submit the dispute to an
arbitration tribunal and the chairman also appointed within 2 months following the
appointment of the two arbitrators. If the contracting parties fail to appoint an
arbitrator within stipulated time, the president of International Court of Justice will be
invited to make the necessary appointments. The arbitration tribunal shall reach its
decision on the basis of present agreement and international law which is applicable
to settle the dispute and also reach its decision by a majority of votes and it shall be
final and binding on the parties. Each contracting party shall bear its own member and
legal representatives cost and the cost of chairman shall be borne by both parties.

Agreement between Germany and Bangladesh BIT 1981

This bi-lateral agreement has come into force on 14th September 1986.
According to Article 10 of this agreement, disputes concerning the interpretation or
application of the present agreement should be settled by the Governments of the two
contracting parties. If the dispute cannot be settled by them then upon the request of
either contracting party be submitted to an arbitration tribunal. The rest of the rules
are as similar as Article 10 of the Agreement between Bangladesh and Denmark to
settle the dispute of contracting parties.

Agreement between Philippines and Bangladesh BIT 1997

This bi-lateral agreement has come into force on 1st August 1998
Article 8 of this agreement deals the settlement of disputes between the contracting
parties. Any disputes between contracting parties arise concerning interpretation or
application shall be settled by consultation through diplomatic channels. If it cannot
resolve the dispute through consultation within six months, it will try to resolve in the
same manner as in Article 10 of the Agreement between Bangladesh and Denmark.
But the difference between these two articles is that the arbitrator of the third state
will be the one who has diplomatic relations with the both contracting parties
according article 8(3) of the Agreement between Philippines and Bangladesh, on the
other hand, Article 10 of the Agreement of Bangladesh and Denmark did not mention
such rule that the arbitrator must have diplomatic relation with both contracting
parties.
Article 9 of this agreement deals the settlement of disputes between a contracting
party and an investor of other contracting party. Any kind of disputes or differences
over the amount of compensation for expropriation or similar measures between an
investor of other contracting party and a contracting party shall be settled amicably
 15

through negotiation. If they fail to solve the matter by negotiation within six months
then investor may submit the dispute to the competent court of contracting party or to
the ICSII for settlement of disputes by arbitration under Washington Convention
1965.

Agreement between Turkey and Bangladesh BIT 1987

This bi-lateral agreement has come into force on 21st June 1990.
According to Article 5 and 6 of this agreement, any disputes arise between a
contracting party and an investor or any disputes in connection with the agreement
shall be settled by consultation or negotiation. If they cannot solve the dispute by
consultation then they may submit the dispute to the ICSII for settlement by
arbitration with consent in writing at any time after one year from the date upon
which the dispute arose.
According to Article 7 of this agreement, when the dispute arises between the
contracting parties, the settlement rules are same as in Article 10 of the Agreement
between Bangladesh and Denmark.

Agreement between Austria and Bangladesh BIT 2000

This bi-lateral agreement has come into force on 1st December 2001.
Article 11-17 of this agreement deals the settlement of dispute between an investor
and a contracting party by consultation or negotiation. The settlement rules of this
agreement are as similar as in Article 9 of the Treaty of Agreement between
Bangladesh and Denmark.
Article 18-24 of this agreement deals the settlement of disputes between the
contracting parties, as far as possible, by amicably or through consultation, mediation
or conciliation. The rest of the rules will be similar as described in Article 10 of the
Agreement between Bangladesh and Denmark, if they are unable to settle the dispute
by themselves within 60 days. But the difference from Article 10 of the Agreement
between Bangladesh or Denmark is that except for compelling reasons, the appointed
members shall be persons proposed by the Secretary General of ICSID and they shall
be independent and impartial according to Article 20 of the Agreement between
Austria and Bangladesh.

Agreement between Switzerland and Bangladesh BIT 2000

This bi-lateral agreement has come into force on 3rd September 2001.
Article 8 of this agreement deals the settlement of disputes between an investor and a
contracting party. To settle the disputes between them, the consultation will take place
 16

under this article. If these consultation do not result in a solution within six months
from the date of request for consultation then the dispute shall be submitted to the
ICSID, instituted by Washington Convention 1965 for settlement by conciliation or
arbitration. If the Secretary General of the centre or a commission of conciliation or
an arbitral tribunal decides that the dispute is beyond the jurisdiction of the Centre
then the parties shall pursue through diplomatic channels a dispute submitted to the
Centre.
Article 9 of this agreement deals the settlement of disputes between the contracting
parties. The procedure for resolving the dispute in this article is similar to the one I
mentioned in the Article 8 of Agreement between Bangladesh and Philippine.

Agreement between Bangladesh and Poland BIT 1997

This bi-lateral agreement has come into force on 19th November 1999.
Article 7 of this agreement deals the settlement of disputes between an investor and a
contracting party. Parties shall endeavour to settle this dispute by means of friendly
agreement. If they cannot solve by this way within six months, the conflict shall be
submitted at the choice of investor to a court of arbitration of the Arbitration Institute
of the Stockholm Chamber of Commerce or the court of arbitration of the Paris
International Chamber of Commerce or the court of arbitration of UNCITRAL. Their
decision shall be considered as final and parties are bound to obey that decision.
Article 8 of this agreement deals the settlement of disputes between the contracting
parties. The procedure for resolving the dispute in this article is similar to the one I
mentioned in the Article 8 of the Agreement between Bangladesh and Philippine and
each contracting party shall bear the costs of their own members and legal
representatives and the costs of chairman and remaining costs shall be borne in equal
party by the contracting parties.

Analysis:
Through these agreements we can learn how to resolve disputes between the
contracting parties or an investor when they agree to foreign investments. Any
agreement should be very flourished so that both the parties can be benefitted in
investment. With these agreements we can see many options for settlement of
disputes such as consultation or negotiation or conciliation or arbitration. Disputes
over the existence of one or more of the above mentioned agreements do not
constitute an impediment to their settlement.
These agreements state that if the dispute is not resolved within 6 months, it will be
resolved through ICSID or ICC or other Centre by arbitration. But we know that
arbitral tribunal procedure is very quicker and also easier, so there is no need to take
long time to settle the dispute. So, I prefer instead of taking 6 months, they can settle
the matter within 3 months.
 17

According to these agreements, each the contracting party shall be appointed one
arbitrator of their choice and they shall be appointed a national of third State as a
chairman for the settlement of disputes. But it will be better and benefitted for both
the contracting parties if the chairman will be selected by the arbitral governing
authority.

Prepared By Yasir Arafat: 17111004

Bangladesh – United Arab Emirates BIT, 2011

Summary:
Settlement of dispute between an investor and contracting parties: According to the
article 9 of this agreement disputes arising between a contracting party and an
investor of the other contracting party shall as possible as be settled through only the
negotiations between both parties. In that case, the government through any agency
designated by the government enters into an agreement regarding an investment
between two parties.
If the dispute cannot be settled with due respect to paragraph 1 of this article within 3
months the parties to the dispute should follow those procedures:
a) If the dispute is not settled properly within 3 months as referred to in para-
1 shall be filed to the competent authorities and constituted under the laws
of the contracting party, in which territory the investment was made
exhausting all local remedies.

b) If the dispute is not settled within 3 months, either party to the dispute may
submit the dispute to the international centre for the settlement of
investment disputes.

Article-10:

a) According to this article disputes between the contracting parties of this

agreement as far as possible be settled through consultation and
negotiation.
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b) If a dispute between the contracting parties cannot be settled within 6

months from the time of disputes, than it shall upon the request of
submitted to an arbitral tribunal.
c) An arbitral tribunal shall be constituted within 2 months of the request for
arbitration. And each contracting party shall appoint one member of the
tribunal. Then that two members shall select a national of a third state both
of the contracting parties. Both of the contracting parties shall be
appointed a chairman of the tribunal.

d) Contracting party may in the absence of any agreement invite the president
of the international court of justice to make any necessary appointment.
The vice president is a national of either contracting party and the
diplomatic relations shall be invited to make the necessary appointments.

e) The arbitral tribunal shall reach its decision by a majority of votes.

Bangladesh- Thailand BIT, 2002

Article: 9

1) All kinds of disputes including disputes over the amount of compensation

for expropriation between a contracting party and an investor of the other
contracting party shall be settled through the negotiation.
2) If such disputes cannot be settled according to the provisions within 6
months from the settlement:
a) the competent court of the contracting party in whose territory in the
investment was made for decisions.
b) the international centre of the settlement of investment dispute established
under the convention on the states of March 18, 1965 done in Washington
D.C.
c) an arbitrator adhoc arbitral tribunal established under the arbitration rules
of the united nations commission on international Trade Law.
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3) The arbitral tribunal established under this article shall reach its decision on
the basis of national laws and regulations of the contracting party.

Article 10:
Dispute between the contracting parties concerning the interpretation of this
agreement shall be settled as possible as through the consultation or negotiations.

Bangladesh-Italy BIT ,1990

1. This agreement is about settlement of dispute between investors and contracting
parties. In such any disputes arising between contracting party and investors of any
other contracting parties relating compensation for expropriation, nationalization,
requisition including disputes relating to the amount. In such dispute cannot be settled
within 6 months of the date of written application investor discretion for settlement to:

a) The contracting party court at all instances having territorial jurisdiction.

b) An arbitral tribunal accordance with the arbitration rules of the UN
commission on international trade law.

2) Both contracting party shall refrain from negotiating through diplomatic any
matter relating to any arbitration procedure.

Bangladesh- Japan BIT, 1998

There is no dispute of this agreement or treaties.

Difference among those agreement:

First of all, the agreement between Bangladesh – United Arab Emirates that, both of
the contracting parties shall be settled their dispute through the negotiation enter into
an agreement. And settle this dispute 3 months according to the article-9 of this
agreement.
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According to the article-10 of this agreement the dispute will be settled through the
consultation and negotiation between the both contracting parties. And also the time
of dispute settle procedure is within 6 months and it shall submit upon the arbitral
tribunal.

In case of, article-10 an arbitral tribunal shall be consist for 2 months with two
members. And both the parties shall be appointed a chairman of the tribunal. And
lastly, the tribunal of arbitral shall reach the decision by the majority of votes.

In case of the agreement of Bangladesh- Thailand, both the contracting parties

accordance with the article-9 shall be settled any dispute through only the negotiation.

On the other hand, article 10 of this agreement both the contracting parties shall be
settled of any dispute through the consultation and negotiation the arbitral tribunal
shall be final and binding on the both parties to any disputes.

The agreement of the Bangladesh- Italy, accordance with the article-9 shall be settled
through compensation for expropriation, nationalization and requisition both of the
contracting parties. On the other hand, article-10 says that the contracting parties shall
be settled throughout the negotiating process of any disputes.

Analysis/ Justification:

Every agreement should be very flourished and Cristal clear when arise any dispute so
that both the contracting parties are benefitted. Any agreement should be proper
negotiated and consulted both the contracting parties. In accordance with the article-9
of the agreement of Bangladesh-UAE says that any dispute shall be settled through
only way of negotiation. But i prefer that if any dispute shall be settled both the
negotiation and consultation with the following authorities, then it shall be proper way
of settlement between the contracting parties.

On the other hand, article-10, clause-3 of this agreement says that both of the
contracting parties shall be appointed a chairman of the arbitral tribunal. But i prefer
that, who will be the chairman of the arbitral tribunal, that will be selected by the
arbitral governing authorities.

In case of the agreement of Bangladesh- Thailand , 2002 in accordance with the

article-9,clause-2 says that any dispute shall be settled within 6 months. But i prefer
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that, it will be settled within 3 months. Because arbitral tribunal procedure is very
quicker and also easier. So no need to take the lengthy process of that settled in any
disputes.

Prepared By Mohammed Ashraful Bari : 17111024

ICSID

International Centre for Settlement of

Investment Dispute in short for ICSID, is an
international forum established by the World
Bank with the adoption of ICSID Convention
on 14th October,1966. by staying independent
from any political consideration, ICSID’s main
goal is to offer a legal framework for the settlement of investment dispute along with acting
as a specialized, autonomous and self-contained mechanism.

Bangladesh has not by far in it’s all bilateral investment treaties, recognized the option of
going to ICSID for settlement of dispute. Despite that, a most famous case involving the
Republic of Bangladesh has been sorted out by ICSID’s arbitration procedure. Chevron
Bangladesh Block Twelve Ltd. (British) vs Peoples Republic of Bangladesh 1 was the case
which was concluded on 17th May, 2010. This mechanism should further be considered as the
remedy providing authority for future bilateral investment treaties

Comparing with Treaties Made by Other

Countries:

1
Case Database; ICSID; <https://icsid.world;bank.org/cases/case-database/case-detail?CaseNo=ARB/
06/10> Accessed on 11-04-2021
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Almost all the treaty follows a basic pattern to fix the dispute settlement provision in
their treaties.

In the bilateral treaty of India-Latvia, article 9 has been mentioned as the dispute
settlement provision. In this treaty, ICSID has been mentioned as the arbitration
authority to solve the disputes.

Turkey and Vietnam’s bilateral treaty has the same dispute settlement mechanism as
every other bilateral treaty made by Bangladesh. The only exception is that this treaty
mentions about a ad hoc arbitral tribunal established by arbitration rules of the United
Nations Commission on International Trade Law.

In the bilateral treaty of Armenia and South Korea, it has been mentioned that the ad
hoc arbitral tribunal must conclude the arbitration procedure within 60 days.

Recommendation:

1. Dispute Settlement Mechanism is much more complex than it seems. While the agreement
is made out of the trust and confidence on each other, a breach can happen at any time. Case
in point, the Argentinian uprising in Investment related Dispute Settlement cases in
International Judicial Forums because of the Argentina’s Economical downturn which
happened in 2002.2 The most observed issue with the dispute settlement articles from the
bilateral treaties is that, Private Investor or Contracting parties must choose either they are
going to file the law suit in domestic court or in any international tribunal. Once they file a
lawsuit in the domestic court of the host country, they are not allowed to make further
litigation in any international arbitration tribunal. 3 It’s the same in vice versa. These type of
provisions discourages investor individuals and state party. These also barres the host party
on getting the right remedy in case of any dispute arising from any agreement.

In this regard, some of the treaties made by Bangladesh are not any exception. All the
bilateral treaties signed by Bangladesh has the same mechanism of choosing either domestic
court or international dispute settlement tribunal in case of any dispute settlement procedure.
2
Zoe Phillips Williams; What, When, Where and Why? Patterns in 29 Investor-State Arbitration;
(Rethinking Bilateral Investment Treaties: Critical Issues and Policy Choices; 2016); Page 31

3
Article 7(2) and 7(3), South Africa-Zimbabwe BIT (2009)
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Bangladesh, as a developing nation, should provide flexibility in the dispute settlement

article regarding the choice of arbitration procedure.

2. The Cost of International Arbitration Procedure regarding settlement of dispute arising out
of a bilateral investment agreement has been increasing continuously. This has put the
investor in different difficult circumstances. For decade, the expenditure to continue a
international arbitration program was within the control of individual investor interested in
investing developing countries. Now that it has skyrocketed, it has become a headache for
investors.4 As a developing and Mid-income Country, Bangladesh needs to think about some
other way to compensate the cost of future litigation arising out of the bilateral treaty it signs.

3. Equally unexpected is the significant increase in the average time frame for claims to be
settled by a final award and executed subsequently. 5 Time frame for the continuance of the
litigation in any international arbitration procedure is another problem which needs to be
sorted out. In each and every treaty, there is a time frame stipulated and fixed as to how much
time should negotiation or conciliation or arbitration program take. But there is no such fixed
amount of time stated for the international arbitration program to end. For this reason, almost
every other litigation are running for such a long time, which is the reason for a lot of
governmental time and money waste. This needs to be fixed and asserted in the treaties from
now on.

4. The settlement of a dispute through arbitration is focused entirely on the payment of

compensation for damages arising from the violation of a treaty provision. 6 Which eventually,
in case of every litigation concluded on any international arbitration procedure, shut the door
close for further deals between the parties of the litigation and further results in the severance
of the relations between the parties of the agreements. This has a minor economical and major
geopolitical effect over the state parties of the agreement. According to experts, state parties
of international treaties which are developing countries needs to fix any other remedy, if there
is any dispute, within the articles of treaties.

4
Investor–State Disputes: Prevention and Alternatives to Arbitration; UNCTAD Series on International
Investment Policies for Development; (UNITED NATIONS New York and Geneva, 2010), Page 16;
5
Ibid;

6
Ibid, Page 19;
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5. Among various circles, concerns about the legitimacy of the ISDS system have recently
emerged and have given rise to discussions in various forums. 7 The triggers for these
concerns come from a perception of inconsistency among arbitral awards in the interpretation
of core elements of protection, but also from the mere fact that an arbitral tribunal composed
of only three individuals, however highly competent and respected, is looking into a national
law or measure and interpreting it, as a last resort. Bangladesh can not afford to set foot in this
trap in future. That is why Bangladesh needs to elaborately plan ahead to tackle these
problems.

Conclusion:

This study highlighted some shortcomings and problems arising for parties involved in
investment treaty arbitration, thereby putting forward the need to explore and develop
alternative approaches to settle or even prevent investment disputes. While all actors in the
area of international investment should be encouraged to give these alternative approaches
more intensive consideration in the future, their nature of involvement in this area will differ
in many ways.

7
Ibid;