Mr Sohat, a businessman residing in Israel regularly introduced Mr Chainrai, a businessman residing in Hong Kong to business ventures in Israel. The initial dispute arose out of a business venture and in May 2011 the parties agreed to convert the legal proceedings initiated before the Israeli courts into arbitration.
At the 24th Summit between the EU and Japan held in Brussels on 6 July, leaders of both parties reached two agreements, an Economic Partnership Agreement (EPA) as well as a Strategic Partnership Agreement.
Investor-state mediation has traditionally received sceptical responses from the investment arbitration community. However, more recent developments show a growing interest in mediation, because of increased numbers of investor-state disputes, the high costs associated with investment arbitration or even as a preliminary step preceding arbitration.