Balancing IIA arbitration through the use of counterclaims

The emergence of investment treaty arbitration provoked a shift in the parties’ respective rights in arbitration proceedings. In 1995, Jan Paulsson delivered the following analysis:

This new world of arbitration is one where the claimant need not have a contractual relationship with the defendant and where the table could not be turned: the defendant could not have initiated the arbitration, nor is it certain of being able even to bring a counterclaim. ¹