International Commercial Arbitration (ICA) and International Investment Arbitration (IIA) differ in scope, legal frameworks, and policy concerns. ICA resolves private disputes, while IIA involves state sovereignty, public interest, and investment treaty obligations.

An umbrella clause in investment treaties mandates host states to honor commitments related to investments, elevating breaches of local obligations to international disputes. It enhances investor protection, though its scope and applicability remain debated in arbitration.