State-to-State Dispute Settlement and Bangladesh

by Barrister Tahmidur Rahman | Sep 11, 2026

Disputes & ArbitrationPublic international law, Bangladesh perspective8 min read

State-to-State Dispute Settlement and Bangladesh

State-to-state dispute settlement advice for government bodies, international counsel teams and businesses affected by disputes between states, covering treaty interpretation, maritime and water questions, trade disputes, negotiation and mediation, and the Bangladesh law issues that run alongside international proceedings. We work alongside government and co-counsel.

Overview

How state-to-state dispute settlement works for Bangladesh

When states disagree about a boundary, a shared river, a trade measure or a treaty obligation, the dispute is usually resolved through negotiation and diplomacy first, and only sometimes through formal adjudication. State-to-state dispute settlement covers that whole range: consultations, good offices, mediation, conciliation, arbitration and proceedings before courts and tribunals such as the International Court of Justice, the International Tribunal for the Law of the Sea and the WTO dispute settlement system. We advise on the Bangladesh dimension of these processes. This work forms part of our dispute resolution practice in Bangladesh.

Bangladesh has significant experience of formal state-to-state dispute settlement. Its maritime boundary with Myanmar was delimited by the International Tribunal for the Law of the Sea in 2012, and its maritime boundary with India by an arbitral tribunal constituted under Annex VII of the United Nations Convention on the Law of the Sea, which made its award in 2014. Those cases resolved long-standing questions in the Bay of Bengal and opened the way for offshore exploration, fisheries management and port development. They also showed how legal, technical and diplomatic work must be combined. State-to-state dispute settlement takes time.

Other issues remain on the agenda. The Ganges water sharing treaty between Bangladesh and India, concluded in 1996 for a term of thirty years, falls due for renewal in 2026, and questions over other shared rivers continue. Trade relations are changing as Bangladesh prepares for graduation from least developed country status, which affects preferential market access and the trade measures other states may apply. Climate change, migration and the Rohingya situation also raise questions of international law, even where formal proceedings are not involved or Bangladesh is not a party. Each of these issues could involve state-to-state dispute settlement.

Our role is practical. We advise government bodies on Bangladesh constitutional and statutory questions that arise in international disputes, such as treaty implementation, the authority to negotiate and sign, and the domestic effect of decisions. We support international counsel teams with Bangladesh law analysis, documents, translation and liaison. We also advise businesses whose projects, licences or investments are affected by a dispute between states. Barrister Tahmidur Rahman and Barrister Remura Meheruba Mahbub lead this work, drawing on their public international law and arbitration experience. We do not lead international cases ourselves, and we are clear about that role.

State-to-state dispute settlement often affects private interests indirectly. An offshore block, a fishing licence, a cross-border power line, a port concession or an export market may depend on how two governments resolve a disagreement. Investors with a Bangladesh connection may also have their own route through an investment treaty, separate from any inter-state process. We work with counsel in the UK, US, UAE, China, India and Singapore, and with our colleagues in the regulatory practice, to help clients understand these connections and plan accordingly. State-to-state dispute settlement rarely affects only governments.

01 · What we handle

Core workstreams

  • Treaty interpretation and implementation
  • Maritime and boundary questions
  • Shared water resources
  • Trade disputes between states
02 · How it runs

Four clear stages

  1. 01Define the question
  2. 02Gather the record
  3. 03Advise and support
  4. 04Implement and protect
03 · Start here

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Consultations in Dhaka or by video. Scope, team and fees are agreed in writing first.

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How we help

What we handle

Workstream 01Disputes & Arbitration

Treaty interpretation and implementation

  • Define the question
  • Gather the record
  • Advise and support
  • Implement and protect
Workstream 02Disputes & Arbitration

Maritime and boundary questions

  • Define the question
  • Gather the record
  • Advise and support
  • Implement and protect
Workstream 03Disputes & Arbitration

Shared water resources

  • Define the question
  • Gather the record
  • Advise and support
  • Implement and protect
Workstream 04Disputes & Arbitration

Trade disputes between states

  • Define the question
  • Gather the record
  • Advise and support
  • Implement and protect
Workstream 05Disputes & Arbitration

Support for international counsel

  • Define the question
  • Gather the record
  • Advise and support
  • Implement and protect
Workstream 06Disputes & Arbitration

Impact on private interests

  • Define the question
  • Gather the record
  • Advise and support
  • Implement and protect
01

Treaty interpretation and implementation

We advise on the meaning and domestic effect of bilateral and multilateral treaties to which Bangladesh is a party, including trade, investment, transport, water, maritime and environmental agreements. Treaties generally require domestic legislation or executive action to take effect within Bangladesh law. We analyse how a treaty has been implemented, where gaps exist and how those gaps may affect a dispute or a private party's rights. Clear analysis of implementation often decides how a treaty point plays out in practice.

02

Maritime and boundary questions

Following the 2012 and 2014 delimitations, questions continue to arise about maritime zones, offshore resource rights, fisheries, shipping and environmental protection in the Bay of Bengal. We advise on the legal framework for activities in Bangladesh's maritime zones, the interaction between international law and domestic statutes, and the implications for licences, concessions and projects in offshore areas. State-to-state dispute settlement outcomes continue to shape these offshore activities today. Licensing questions are reviewed carefully.

03

Shared water resources

Transboundary rivers are central to Bangladesh's agriculture, environment and economy. We advise on the legal principles governing shared watercourses, the structure and renewal of water-sharing arrangements, and the role of joint commissions and negotiation. We also advise businesses and development partners on how water-related arrangements may affect projects, environmental approvals and long-term planning in affected regions. Accurate, current information is essential, because these arrangements evolve through negotiation.

04

Trade disputes between states

We advise on WTO dispute settlement and on trade disputes under regional and bilateral agreements, including anti-dumping, countervailing and safeguard measures that affect Bangladeshi exports or imports. We help exporters and industry associations gather evidence for their government, and advise government bodies on consultation and dispute procedures. LDC graduation makes this work increasingly important for Bangladesh's export sectors. Well-documented industry evidence can shape whether a government decides to act.

05

Support for international counsel

International proceedings before the ICJ, ITLOS, arbitral tribunals or WTO panels are usually led by specialist international counsel. We support these teams with Bangladesh law opinions, archival and documentary research, translation and certification of Bengali materials, liaison with ministries and agencies, and preparation of factual witnesses. Reliable local input often strengthens the factual record substantially. We work to the timetable set by the lead team and keep communication lines clear. Documents are indexed and cross-referenced so that counsel can find a source or translation quickly.

06

Impact on private interests

We advise companies, lenders and investors whose operations depend on matters subject to state-to-state dispute settlement, such as offshore exploration, cross-border energy trade, transit, ports and fisheries. We assess legal risk, contract protections such as force majeure and change in law, political risk insurance and investment treaty options. We also help clients engage appropriately with government when their interests are affected. Early planning reduces exposure when state-to-state dispute settlement is prolonged. We help clients prepare contingency plans for supply, financing and contract performance during a prolonged dispute.

RecognitionThe Legal 500Asia Pacific ranks Tahmidur Remura Wahid (TRW) Law Firm for dispute resolution in Bangladesh.
Cross-border reach6 jurisdictionsMatters coordinated with counsel in the UK, US, UAE, China, India and Singapore.
Bar and admissionsDhaka and LondonBarristers and advocates in Bangladesh, with a solicitor of England and Wales (non-practising).
HeadquartersDhakaHouse 410, Road 29, Mohakhali DOHS. Consultations in person or by video.
Who leads this work

Partner-led, on every matter.

Disputes & Arbitration matters at TRW are led by partners, supported by associates, with one responsible lawyer from first advice to final outcome.

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01

Can a private company take part in state-to-state dispute settlement?

Generally not as a party. Proceedings before the International Court of Justice, ITLOS in contentious inter-state cases, or WTO panels are brought by states. A private company affected by a dispute can, however, provide evidence and information to its government, request diplomatic support, and in some cases pursue its own claim under an investment treaty. Industry associations often play an important role in trade disputes by gathering data and explaining commercial effects. We advise companies on how to engage constructively and protect their position while the inter-state process continues. Coordination with officials is essential.

02

What forums are used in state-to-state dispute settlement?

The main forums include the International Court of Justice, the International Tribunal for the Law of the Sea, arbitral tribunals under the UN Convention on the Law of the Sea or specific treaties, often administered by the Permanent Court of Arbitration, and the WTO dispute settlement system for trade. Many treaties also provide for negotiation, joint commissions or conciliation before or instead of adjudication. Which forum is available depends on the treaties in force between the states and any declarations they have made accepting jurisdiction. Consent remains the foundation of each forum.

03

How did the Bay of Bengal cases affect business in Bangladesh?

The 2012 ITLOS judgment and the 2014 arbitral award settled Bangladesh's maritime boundaries with Myanmar and India. That gave legal certainty over large maritime areas, which is important for offshore oil and gas blocks, fisheries, shipping and future marine infrastructure. Investors and operators can now assess offshore rights against a settled legal map, although domestic licensing, environmental and regulatory requirements still apply. The cases also show how state-to-state dispute settlement can unlock economic opportunity when long-standing uncertainty is resolved. Those outcomes remain a reference point for state-to-state dispute settlement in the region.

04

What happens to the Ganges water treaty in 2026?

The Ganges water sharing treaty signed in 1996 was concluded for thirty years, so its term runs to 2026, and renewal or replacement is a matter for negotiation between Bangladesh and India. The outcome depends on diplomacy rather than litigation, although international law on shared watercourses informs the discussion. Businesses in agriculture, fisheries, energy and infrastructure in affected regions should monitor developments. We can advise on the legal framework and on contractual protections for projects that depend on water flows, but cannot predict the diplomatic outcome. Formal state-to-state dispute settlement has not been the chosen route.

05

How does LDC graduation affect trade disputes?

Graduation from least developed country status changes Bangladesh's position in the trading system, including the loss over time of some preferential market access and of certain special treatment available to LDCs. Bangladeshi exporters may face more trade remedy investigations, and Bangladesh's own trade measures may be scrutinised more closely. This makes state-to-state dispute settlement under the WTO and trade agreements more relevant. We advise exporters and industry bodies on preparing evidence, monitoring measures and engaging with the government's trade officials at an early stage. Preparation now pays off later.

06

Is an international decision automatically enforceable in Bangladesh courts?

Not automatically. Bangladesh generally follows a dualist approach, under which international obligations take effect in domestic law through legislation or executive implementation. Courts may refer to international law and treaties when interpreting domestic law, particularly where the law is unclear, but a judgment of an international court does not usually operate directly as a domestic court order. Implementation of decisions from state-to-state dispute settlement therefore normally depends on government action. We advise on how a particular decision or treaty is likely to be given effect in practice. We explain the likely route.

07

Can investors use investment treaties instead of state-to-state processes?

Many bilateral investment treaties allow a foreign investor to bring a claim directly against the host state through international arbitration, often under the ICSID Convention, to which Bangladesh is a party. Some treaties also contain separate state-to-state dispute provisions for questions of interpretation or application. An investor-state claim and a state-to-state process can therefore exist side by side, with different parties and remedies. We advise on whether a treaty applies, whether the investment is protected and how the two routes might interact in a given situation. Both routes need careful analysis.

08

How long does state-to-state dispute settlement usually take?

Formal proceedings are usually lengthy. Cases before international courts and tribunals commonly take several years from filing to final decision, including written pleadings, hearings and deliberation. WTO disputes have their own timetable, which has been affected by the long-standing difficulties with the Appellate Body. Negotiation and mediation may resolve matters faster or more slowly depending on political circumstances. Businesses affected by a dispute should therefore plan for prolonged uncertainty and build appropriate protections into their contracts, financing arrangements and investment structures. Contract planning should assume that state-to-state dispute settlement may take years.

How a matter runs

From first call to resolution.

  1. 01

    Define the question

    We identify the precise legal issue, the treaties and forums potentially available, the Bangladesh law dimension and the client's role, whether as a government body, an international counsel team or an affected business. The scope is agreed in writing.

  2. 02

    Gather the record

    We collect treaties, implementing legislation, official records, maps, data and correspondence, and arrange translation and certification of Bengali materials so the factual record is accurate and complete. Gaps are flagged to the client.

  3. 03

    Advise and support

    We prepare legal opinions, briefing notes and evidence, support negotiations or proceedings, and coordinate with ministries, co-counsel and technical experts throughout the state-to-state dispute settlement process. Updates follow each key stage. Advice is concise and practical.

  4. 04

    Implement and protect

    We advise on implementing outcomes in Bangladesh law and on protecting private interests through contracts, insurance, licences or investment treaty options while the wider process unfolds. Contracts are reviewed against the outcome. We remain available for follow-up.

“Demonstrates an extraordinary command over both domestic litigation and international arbitration.”

The Legal 500 Asia Pacific, Bangladesh: Dispute resolution, client feedback

FAQ

Questions, answered.

Still unsure? Email info@trw.co with a short outline of the matter.

What is state-to-state dispute settlement?
It is the set of methods states use to resolve disagreements with each other under international law, including negotiation, mediation, conciliation, arbitration and adjudication before international courts and tribunals. The available methods depend on the treaties in force between the states and on their consent to jurisdiction, which is always required in some form. For Bangladesh, state-to-state dispute settlement has included maritime boundary cases, trade consultations and long-running negotiations over shared rivers, each using a different method suited to the issue and the parties involved. Consent can be given in advance or case by case.
Has Bangladesh used international courts before?
Yes. Bangladesh's maritime boundary with Myanmar was decided by ITLOS in 2012, and its boundary with India by an arbitral tribunal under UNCLOS Annex VII in 2014. Bangladesh has also participated in the WTO dispute settlement system. These experiences are often cited as examples of successful use of international law by a developing country. They have also influenced how later governments approach negotiation, documentation and technical preparation, and they remain points of reference whenever state-to-state dispute settlement is discussed in Bangladesh.
Does TRW lead cases before the ICJ or ITLOS?
International cases of this kind are usually led by specialist international counsel appointed by governments. Our role is to provide Bangladesh law advice, local research, translation, liaison and support for those teams, and to advise government bodies and businesses on the domestic implications of state-to-state dispute settlement. We are transparent about this role from the outset, and we coordinate closely with lead counsel so that Bangladesh law input arrives in the form and at the time it is most useful.
Can businesses influence trade disputes?
Businesses cannot bring WTO disputes themselves, but they can provide evidence of trade barriers or unfair measures to their government and support it during consultations and proceedings. Industry associations are often the most effective channel. Clear data on lost sales, tariffs and market conditions makes a significant difference to whether a government decides to act. We help industry bodies organise this evidence in a form that trade officials can use in consultations, and we advise on confidentiality where commercially sensitive data is involved.
What role does mediation play between states?
Mediation and good offices, sometimes by third states or international organisations, are frequently used in disputes between states, particularly where political sensitivities are high. They allow flexible solutions that a court might not order. Many water, border and trade issues in South Asia have been addressed through negotiation and joint commissions rather than formal adjudication. Formal state-to-state dispute settlement is often reserved for issues that cannot be resolved this way, and the threat of formal proceedings can itself encourage negotiated outcomes.
How does international law apply in Bangladesh?
Bangladesh generally requires treaties to be implemented through domestic law to have direct legal effect. The Constitution refers to respect for international law in its fundamental principles of state policy, and courts may consider treaties when interpreting legislation. The exact effect of a treaty depends on how it has been implemented in each case. We advise clients on whether a particular treaty provision can be relied on in Bangladesh courts or before Bangladeshi authorities, and on the practical steps needed to give it effect.
Should investors worry about inter-state disputes?
Investors in sectors such as offshore energy, ports, cross-border power trade and fisheries should be aware of relevant inter-state issues and factor them into due diligence and contract terms. Political risk insurance, stabilisation and change-in-law clauses, and investment treaty structuring can help manage the risk where state-to-state dispute settlement is possible. They should also monitor diplomatic developments and maintain good communication with relevant ministries, so that changes in the international position are identified early and contracts can respond in time.
How can TRW assist?
Contact our Dhaka office with a short description of the issue and your role. We can provide Bangladesh law analysis, support international counsel, advise on the domestic implementation of international decisions, or help businesses assess and manage risk arising from disputes between states. Please avoid sending sensitive documents until we have confirmed that we can act. We will confirm our role, identify any conflicts, and propose a practical scope of work and timetable that fits the wider process and the client's internal approvals. Clients can reach us on +880 1708 000660 or at info@trw.co for a first discussion about state-to-state dispute settlement.

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