EU-Vietnam Trade Treaty Dispute Resolution

EU-Vietnam Trade Treaty Dispute

In disputes regarding investment (for example, expropriation without compensation or discrimination of investment), an investor is allowed to bring the treaty dispute to the Investment Tribunal for settlement.

To ensure the fairness and independence of the dispute settlement, a permanent Tribunal will be comprised of 9 members: 3 nationals each appointed from the EU and Vietnam, together with 3 nationals appointed from third countries. Cases will be heard by a 3-member Tribunal selected by the Chairman of the Tribunal in a random and unpredictable way. This is also to ensure consistent rulings in similar cases, thus making the dispute settlement more predictable. The IPA also allows a sole Tribunal member where the claimant is a small or medium-sized enterprise or the compensation of damaged claims is relatively low. This is a flexible approach considering that Vietnam is still a developing country.

In case either of the disputing parties disagrees with the decision of the Tribunal, it can appeal it to the Appeal Tribunal. While this is different from the common arbitration proceeding, it is quite similar to the 2-level dispute settlement mechanism in the WTO (Panel and Appellate Body). 

USAC continues to monitor progress and results of the Tribunal process. Contact us for more information or to participate in the review project.

Contact us today!

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