Investment Agreements in the Western Hemisphere: A Compendium
Agreement Between Nicaragua and the United States
1 July 1995
Subject: VI. Settlement of Disputes Between Contracting Parties
A. Pre-Arbitration Negotiations
Parties agree to consult promptly, on the request of either, to resolve any disputes in connection with the Treaty, or to discuss any matter relating to the interpretation or application of the Treaty or to the realization of the objectives of the Treaty. (Article VIII). Any dispute which is not resolved through consultation or other diplomatic channels, shall be submitted, upon request of either Party, to an arbitral tribunal. (Article X (1)).
1. Constitution of the Tribunal
. Within two months of receipt of a request, each Party shall appoint an arbitrator. The two arbitrators shall select a third arbitrator as Chairman, who is a national of a third State. . The UNCITRAL Rules for appointing members of three member panels shall apply mutatis mutandis to the appointment of the arbitral panel except that the appointing authority shall be the Secretary General of the Centre. . Expenses incurred by the Chairman, the other arbitrators, and other costs of the proceedings shall be paid for equally by the Parties. However, the arbitral panel may, at its discretion, direct that a higher proportion of the costs be paid by one of the Parties. (Article X (2) (4)).
2. Procedural Rules of the Tribunal
Decisions of the tribunal shall be binding on both Parties. In the absence of agreement by the Parties to the contrary, the arbitration rules of the UNCITRAL, except to the extent modified by the Parties or by the arbitrators, shall govern. Unless otherwise agreed, all submissions shall be made and all hearings shall be completed within six months of the date of selection of the third arbitrator, and the arbitral panel shall render its decisions within two months of the date of the final submissions or the date of the closing of the hearings, whichever is later. (Article X (1) (3)).
3. Applicable Law
Disputes shall be decided "in accordance with the applicable rules of international law." (Article X (1)).