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Law

Exhaustion of Diplomatic Remedies in International Investment Arbitration

Quick fact

In traditional diplomatic protection, states were required to exhaust local remedies before bringing an international claim. However, modern investment treaties typically waive this requirement, allowing investors to proceed directly to international arbitration—a radical shift from customary international law.

Why this is interesting

Did you know that before an investor can take a country to international arbitration, they often must first sue in that country's own courts? Why would an international system require you to use the very courts you distrust?