Lex Arbitri in foreign investment matters

In view of the possible accession of Bolivia to MERCOSUR it was analyzed whether the adoption of the Protocol of Cologne as Lex Arbitri in matters of foreign investments is reasonable. After determining this reasonableness it became evident that the Bolivian regulation violates the principle of voluntariness of the parties by inhibiting them from submitting investment arbitration to Bolivian jurisdiction laws and authorities. Likewise it was also emphasized that the Cologne Protocol does not determine how to enforce and recognize the arbitral award which implies that the awards are subject to the same reservations that the seat of arbitration has with respect to the recognition and enforcement of international commercial awards subject to the New York Convention. Therefore the search for a satisfactory international investment arbitration system for Bolivia not only involves the need to previously adapt the Bolivian regulations in accordance with this integration process but it is also necessary to delimit specific cases in which the States can resort to a challenge mechanism provided by MERCOSUR.