Facts

State C and State D are both signatories of the Washington Convention for the ICSID. Both have notified ICSID that they consider all types of investment disputes as arbitrable.

Cee Co. is a multinational firm incorporated in State C. State D asked Cee Co. to set up a subsidiaryinitsterritoryandpromisedCeeCo.thatitwouldgiveitataxholidayfor20years. Cee Co. agreed but it required State D to sing an ICSID arbitrationagreement.

ThegovernmentofStateDhaschangedandthenewgovernmenthascancelledalltaxholidays granted to foreign firms. In anticipation of Cee Co. seeking ICSID arbitration, State D has informed ICSID that it no longer considers disputes relating to taxes as being arbitrable. Cee Co. does ask ICSID to convene an arbitrationtribunal.

Questions:

1.Does the tribunal have jurisdiction toproceed?

2.In the preceding questions, assume that Cee Co. obtains an award from the ICSID tribunal. Cee Co. now seeks to enforce the award in a State C court. State D pleads that it is immune from the jurisdiction of the court. What will the courtdecide?