Aust's Modern Treaty Law and Practice

When a treaty prescribes how disputes can be settled, it usually provides for a preliminary phase involving direct negotiations or consultations. In the case of bilateral agreements, more binding mechanisms tend to be found in agreements with more specific obligations, or those directly affecting individual interests, such as trade. Otherwise, bilateral agreements will often specify that disputes are to be resolved by the diplomatic channel or other avenue of voluntary settlement. Both bilateral and multilateral treaties may provide for conciliation or mediation. The parties may, however, wish to resort to compulsory binding settlement. The two principal features are a prior agreement to submit disputes to a third party, and a provision that the decision of the third party is legally binding on the parties in dispute. Procedures of arbitration and judicial settlement, including the International Court of Justice, are analysed. In respect of remedies, the chapter examines countermeasures and the principles underlying them, sacrosanct obligations and necessity.