How effective is the dispute settlement mechanism?

Individual decisions in investor-state arbitration cases have led to discussions among experts and the general public. Nevertheless, the dispute settlement mechanism contained in the BITs has largely proven to be effective in recent years. The BITs give investors the right to obtain an internationally enforceable arbitration award within a reasonable timeframe and this decision can only be challenged on very limited grounds. It should also be mentioned that only a small portion of disputes between investors and recipient countries reach arbitration. In most cases, mutually amenable solutions are found - with or without the help of the authorities of the country of origin - prior to the actual arbitration proceeding.

Specialist staff
Last modification 20.04.2016

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