Find International Arbitral Bodies Documents: UNCTAD

International arbitration has been the most commonly used method for the settlement of international investment disputes. However, other forms of dispute settlements are, to date, only rarely used in practice. Taking into consideration that international arbitration does have a distinct set of disadvantages and is generally costly, this paper presents alternative approaches to the settlement of investment disputes as well as approaches States can take to avoid and prevent investments disputes from arising in the first place.

The paper takes stock of and analyses the recent increase in investor-State disputes - 225 known cases, with two-thirds filed since 2002. This surge in disputes proves that IIAs work toward creating a favourable investment climate. However, it raises concerns not only in terms of substantive and procedural issues, but also in terms of monetary implications and the limited technical capacity in developing countries to handle the disputes

The aim of this study is to take stock of and to analyse the major developments in the interpretation of procedural and substantive international investment agreement (IIA) provisions as contained in bilateral investment treaties and economic integration agreements with investment provisions. It addresses the implications of those developments for countries, emphasizing the particular needs of developing countries. It presents some conclusions and reflections on possible next steps that countries could take to implement the lessons learned from the investor-State dispute settlement experience.