All states have an obligation to settle disputes peacefully in accordance with arts 2(3) and 33 of the Charter of the United Nations (‘UN Charter’), and the purpose of this chapter is to provide an introduction to the methods for the settlement of international disputes. It begins with an overview of international dispute settlement, including a discussion of the concept of a ‘dispute’, and the distinction between political and legal disputes. It then traces the evolution of the obligation to settle disputes peacefully through its broad phases: the 1899 and 1907 Hague Conventions for the peaceful settlement of international disputes, and the creation of the Permanent Court of Arbitration; the Covenant of the League of Nations of 1919, and the creation of the Permanent Court of International Justice (‘PCIJ’); and the Kellogg–Briand Pact of 1928, and the UN Charter of 1945. The chapter then considers the various methods of international dispute settlement, beginning with the diplomatic methods (negotiation, fact-finding and inquiry, the use of ‘good offices’, mediation, and conciliation) before turning to the adjudicatory forms of dispute settlement.

International economic law is an umbrella term with no fixed meaning. At its broadest, it covers all aspects of economic relations between states, including regulation of the conduct of individuals, corporations and international organisations. A narrower meaning is ‘the segment of public international law directly governing – rather than merely affecting – economic relations between States or international organizations’. The field also embraces governance arrangements, such as the World Bank, International Monetary Fund, and World Trade Organization, as well as the many UN and regional bodies that advance economic development. As space does not permit a discussion of all these aspects, this chapter focuses on two important areas: international trade law and international investment law. International trade law is the body of law, mainly treaty based, that governs the terms on which states permit the trade in goods and services across their borders.

To explain the law of state responsibility and diplomatic protection, it helps to distinguish between primary rules and secondary rules. The primary rules of international law provide that certain acts or omissions are unlawful – for example, the law on the use of force would be considered primary rules of international law, a breach of which would be an internationally wrongful act. When those primary rules are breached, it is the secondary rules – the law of state responsibility – that come into play, to determine inter alia the consequences of that initial wrongful act, whether the wrongful act was committed by a state (thereby entailing that state’s responsibility), and what action the ‘wronged state’ may take in reply. The rules on state responsibility cover wrongful acts committed against another state, as well as certain wrongful acts committed against nationals of the state, including corporations; the law of diplomatic protection solely concerns how a state may raise a claim against another state for a wrong committed against one of its nationals, rather than against the state itself.

This chapter considers the various functions of States in international commercial and investment arbitration, which are essentially twofold.First, States are legislators and the creators of the system, and they also assist its development through their conduct which informs the interpretation of relevant treaties, such as BITs.Secondly, States are also parties to such proceedings, usually as the respondent to a claim, but also possibly also as the claimant, as a counter-claimant, and as a non-party intervener.This chapter then considers issues faced by States when acting as the respondent, and discusses how States might best prepare for and handle such disputes, and it also identifies various procedural issues which are likely to arise in such arbitral proceedings.It concludes that States have a complex combination of roles in international arbitration, and that the challenges in responding to claims can be managed if States are willing to learn from the decades of experience which States now have of participating in international arbitration proceedings.

This chapter charts developments in Southeast Asia concerning regional economic integration through the conclusion of plurilateral trade and investment agreements.It examines the early steps towards achieving economic integration, including the creation of the Association of Southeast Asian Nations (“ASEAN”) in 1967, and the progressive steps that Southeast Asian States have taken to liberalise their economic and investment policies through the ASEAN framework.It then considers various recent and ongoing developments in regional economic integration, including the negotiation of the Trans-Pacific Partnership Agreement and its revival as the Comprehensive and Progressive Agreement on Trans-Pacific Partnership, the creation of the ASEAN Economic Community, and the ongoing negotiation of the Regional Comprehensive Partnership Agreement.It concludes with the observation that many innovations in the negotiation of IIAs are emerging from the practice of ASEAN and other Asian States which are having broader implications on the field of international investment law.