THE ADMINISTRATION OF INVESTMENT DISPUTES
Sweden and the Arbitration Institute of the Stockholm Chamber of Commerce (SCC) play a leading role internationally as a forum for disputes between investors and states.
In 1993, the SCC registered its first investment dispute. Since then, the SCC has administered a large number of investment disputes, primarily based on bilateral investment treaties (BITs). In addition, the SCC is one of three possible forums for investment disputes in the multilateral investment protection agreement, the Energy Charter Treaty (ECT). The SCC has emerged as one of the world's leading institutes for the resolution of investment disputes.
The role of the SCC may vary in different investment disputes. A large share of the investment disputes are administered under the SCC Arbitration Rules. The SCC Arbitration Rules is the third most commonly used set of arbitration rules in investment disputes, making the SCC the second largest arbitration institute in the world, after the World Bank’s International Center for Settlement of Investment Disputes (ICSID), for the administration of investment disputes. The role of the SCC in investment disputes includes acting as Appointing Authority under the UNCITRAL Arbitration Rules.
Sweden and the SCC serve as forum for disputes between investors and states in at least 120 BITs and in the ECT. Of the 120 BITs, 61 agreements stipulate that the SCC Arbitration Rules shall apply to disputes arising out of the agreement. The remaining 60 BITs, stipulate that the SCC shall act as Appointing Authority under the UNCITRAL Arbitration Rules or that Sweden shall be the legal seat of the dispute.
An arbitration where the dispute concerns a claim based on an investment protection agreement is initiated in the same way as an arbitration procedure under the SCC Rules. The investor must file a request for arbitration with the SCC. Upon filing the request for arbitration, the investor must pay a registration fee to the SCC.