Investor Presentaiton
20
INVESTOR-STATE DISPUTE SETTLEMENT: A SEQUEL
developed countries and economies in transition also have faced a
large number of disputes.
5
Against this background, it is not surprising that States continue
to evaluate ISDS provisions in their agreements. Many ISDS
provisions have grown in sophistication and complexity as States
attempt to respond to problems they have encountered when
arbitrating investor-State disputes under previously-concluded IIAS.
Specifically, States have sought to increase the control they exercise
over arbitration procedures, promote judicial economy, clarify the
powers of arbitral tribunals and enhance the legitimacy of ISDS. A
few countries have taken steps to remove themselves from the ISDS
system altogether.°
6
At the same time, ISDS remains a regular feature in investment
treaties and is viewed by many countries as a cornerstone of
investment protection. It serves as a procedural enforcement
mechanism for the core substantive provisions of the treaty. It is
important for each government to fully understand the features and
implications of the ISDS system and to make informed choices in
order to tailor it, where desired, to the country's policy objectives.
This sequel to the first UNCTAD paper on ISDS' does not
address the fundamental question of whether an IIA should give
5 At least 95 governments have faced investor-State arbitration: 61
developing countries, 18 developed countries and 16 countries with
economies in transition (Ibid., annex 2).
6 Australia's government, in April 2011, issued a policy statement
concluding that ISDS was neither necessary nor desirable and that
Australia would no longer include it in its investment treaties. Three
countries have denounced the ICSID Convention the Plurinational State
of Bolivia in 2007, Ecuador in 2009 and the Bolivarian Republic of
Venezuela in 2012. The same three countries, and also South Africa, have
also renounced some of their investment treaties.
7 UNCTAD, 2003.
UNCTAD Series on International Investment Agreements IIView entire presentation