Exhaustion of local remedies

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Exhaustion of local remedies

A limited exception may apply in cases where the State has given its consent to arbitration under the condition of the exhaustion of local remedies. Art. 26, second sentence of the ICSID Convention provides: A Contracting State may require the exhaustion of local administrative or judicial remedies as a condition of its consent to arbitration under this Convention. Only a few States have conditioned their consent to ICSID jurisdiction on the prior exhaustion of local remedies. A relatively small number of bilateral investment treaties and a few investment agreements with investors contain such a condition.