Investor Presentaiton

60 INVESTOR-STATE DISPUTE SETTLEMENT: A SEQUEL Therefore, the wording of the provision matters and the intention of the contracting parties in this respect should be made clear in order that their wishes be respected by arbitral tribunals. 5. Alternative dispute resolution 50 49 Aside from amicable settlement through negotiations and consultations between the disputing parties, there exist the so-called alternative dispute resolution (ADR) methods conciliation and mediation. Compared to arbitration, ADR methods put less emphasis on legal rights and obligations. They involve the assistance of a third party neutral (conciliator or mediator), whose main objective is not the strict application of the law but finding a solution that would be accepted as just and reasonable by the disputing parties. Mediation is an informal and flexible procedure: a mediator's role can vary from helping the parties establish a dialogue to effectively proposing and arranging a workable settlement to the dispute. It is often referred to as "assisted negotiations". Conciliation procedures follow formal rules (there are several sets of conciliation rules e.g. ICSID, UNCITRAL, International Chamber of Commerce (ICC), etc.). At the end of the procedure, conciliators usually draw up terms of an agreement that, in their view, represent a just compromise to a dispute but are not binding on the parties involved. Due to the formality of the procedure, some call conciliation a “non-binding arbitration”. 49 Additional complications in this respect may arise if an investor tries to rely on an IIA's most-favoured nation obligation to invoke more favourable ISDS provisions from other IIAs concluded by the respondent State. See section II.S below. 50 See also section III.C below. UNCTAD Series on International Investment Agreements II

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