Investment arbitratin:The case of Albania

Albania has implemented a liberal foreign investment regime with the goal of increasing foreign direct investment. The Law on Foreign Investment allows 100 percent foreign ownership of companies and outlines specifi c protections for foreign investors. In addition, Albanian tax policy does not distinguish between domestic and foreign investments. The U.S. - Albania bilateral investment treaty entered into force in 1998 and ensures that U.S. investors receive most-favored-nation treatment. The government has taken measures to improve the overall business climate in the country by streamlining business procedures through e-government reforms and improved legislation in a variety of sectors. The Republic of Albania is a party to 43 bilateral agreements for mutual protection and encouragement of foreign investment. Currently, another six bilateral agreements are being negotiated. In addition, Albania is also a party to 38 bilateral agreements for economic, trade and technical cooperation and fi ve other agreements are being negotiated. Albania is also a party to the Convention on the Se# lement of Investment Disputes between States and Nationals of Other States. In every bilateral investment treaty there is a standard clause providing that, in the case of a dispute between the Republic of Albania and a potential investor, this dispute shall be submi# ed before the World Bank’s International Center for Se# lement of Investment Disputes. The Albanian Law on Foreign Investments provides for equal treatment of local and foreign investors in the Republic of Albania. Foreign investors in Albania can obtain the same assistance and use the same privileges and opportunities as granted by the law to local investors.