Risk mitigation is an essential element of any cross-border deal or investment. Aside from addressing regulatory and compliance issues and ensuring local law requirements are met, this includes planning an effective dispute resolution mechanism, which is often based on arbitration.
In addition to ensuring a well-drafted dispute resolution clause in the contract, it is also important that parties to cross-border deals consider at the outset whether their investments can and should be structured to benefit from the protection offered by international investment treaties.