On March 30, 2023, the International Court of Justice (ICJ) issued its judgment on the merits in a case closely watched by the investment law community. The case concerned the alleged violations of the 1955 Treaty of Amity, Economic Relations, and Consular Rights between the two states by the United States regarding Iranian assets on U.S. territory. The majority of the court decided in favour of Iran, finding violations of a number of provisions of the treaty.
The case is likely to have repercussions in ISDS practice, as the ICJ has pronounced itself on the interpretation and application of some of the most common investment protection standards, such as non-impairment, full protection and security, and indirect (judicial) expropriation.
We analyze the decision in greater detail in one of this issue’s Insights.