International Economic Dispute Settlement

The post-Cold War era has seen an unprecedented move towards more legalization in international cooperation and a growth of third-party dispute settlement systems. WTO panels, the Appellate Body and investor-state dispute settlement cases have received increasing attention beyond the core trade and investment constituencies within governments. Scrutiny by business, civil society, academia, and trade and investment experts has been on the rise. This book asks whether we observe a transformation or a demise of existing institutions and mechanisms to adjudicate disputes over trade or investment. It makes a contribution to the question in which direction international economic dispute settlement is heading in times of change, uncertainty and increasing economic nationalism. In order to do so, it brings together chapters written by leading researchers and experts in law and political science to address the challenges of settling disputes in the global economy and to sketch possible scenarios ahead of us.

"Over the past 30 years, international trade has grown constantly and since 2008 it has increased by 26% (World Trade Organization 2019). In the same period of time foreign direct investment (FDI) grew more than 20% before 2000, 8 % in 2000-2007, and has shown slow growth since 2008, averaging about 1% growth per year for a decade (UNCTAD 2019b, p. xi).1 What we have also observed (but we lack systematic data) is a spectacular growth of trade in parts and components and a substantial increase of trade in services, reflecting companies' investment and sourcing decisions increasing the web of global and regional supply chains. The "death of distance" through lower transport costs and advancements in information technology has contributed to accelerating these developments"--

Implementing International Economic Law focuses on the relationship between the rules of public international law and international economic law from the point of view of dispute settlement mechanisms. It demonstrates that the practice of international adjudicative bodies such as the WTO and the ICSID went beyond merely interpreting and applying the rules of law and became international organisations as “law-makers”. This is where the sources of international law play a crucial role.

Containing contributions from both academic experts and practitioners, and from economic and legal experts, this book explores the use of economics in international economic law.

The nature and magnitude of the growth in China-Africa economic relations in recent years is unprecedented and extraordinary. According to recent estimates, the value of China’s trade with African nations grew from a mere USD 10 million in the 1980s to USD 55 billion in 2006, and to more than USD 100 billion by the end of 2009, at which time nearly 1,600 Chinese companies were doing business in Africa with a direct stock investment of about USD 7.8 billion. The accelerating impetus of China-Africa trade has overtaken some crucially important features of an effective trade regime, most notably a fully trustworthy dispute resolution system. It is the current and potential future efficacy of such a system that is taken up in this book with great understanding and skill. The author evaluates existing mechanisms of dispute resolution in all aspects of China-Africa economic relations in light of the parties’ economic and cultural profiles and their evolving legal traditions, and goes on to propose a comprehensive institutional model of dispute resolution that takes full account of the economic needs and legal cultures of both China and the various African countries. Among the topics and issues that arise in the course of the book are the following: suitability of the WTO’s dispute resolution mechanism for China-Africa trade relations; domestic, bilateral, regional, and multilateral law sources affecting China-Africa commerce; the role of intra-Africa bilateral investment treaties; competing interests that underpin international investment law; relevant legal, economic, and political challenges and cultural barriers; permissible scope of regional trade regimes; national treatment versus duty to compensate; and harmonization initiatives—model laws, incoterms, restatements. The author includes in-depth analysis of how China-Africa economic relations fare in the varieties of dispute resolution methods available at the major arbitral European and American institutions—ICSID, AAA, ICC, LCIA, PCA—as well as under the rules of the China International Economic and Trade Arbitration Commission (CIETAC) and the important arbitral fora in Cairo, Kuala Lumpur, and Lagos. Endorsing institutional arbitration as the most appropriate form of resolving trade, investment, and commercial disputes arising between China and African countries, this ground-breaking analysis outlines the obstacles and shortcomings of the available means of dispute settlement, both in international and domestic contexts, and offers deeply informed recommendations for improvement of the existing system. Although the book will be welcomed by interested scholars and practitioners for its detailed discussion of how China-Africa trade relations are situated within the global trade regime, its most enduring value lies in its thorough evaluation of the available options and its proposals for structuring a legal framework within which future disputes will be effectively resolved.

A critical assessment of trade retaliation in the WTO by academics, diplomats and practitioners involved in such actions.

First Published in 2013. Routledge is an imprint of Taylor & Francis, an informa company.

For many years it was said that the weakness of international law was the lack of a system for the enforcement of legal obligations. Commentators pointed to the paucity of cases in the International Court and the unwillingness of States to undertake binding obligations to settle their disputes. This position has now changed beyond recognition. The number of international tribunals has increased and many of them, such as ICSID and the International Court of Justice, are busier than at any time in their history. Increasingly, the classical procedures of diplomatic protection are circumvented as corporations and individuals litigate in their own right against States in international tribunals. This book surveys the range of procedures for the settlement of international disputes, whether the disputes arise between States or between States and corporations or individuals. The first part of the book examines non-judicial procedures such as negotiation, mediation, fact-finding, as well as judicial procedures. Among the tribunals covered are ICSID, the UNCC and the Iran-US Claim Tribunal, the WTO disputes panels, ad-hoc inter-State and international commercial arbitral tribunals and the International Court of Justice. In the second part of the book the emerging principles of procedural law applied in these tribunals are discussed. Here the authors go through the entire settlement process from the agreement to submit to a settlement procedure and the constitution of the tribunal, through to the determination of the law applicable to the merits and to the procedure of the tribunal, to the review, and ultimately the recognition and enforcement of tribunal awards.

Investor-State disputes are increasing and damage awards are often significant. It is thus no surprise that the investor-State dispute settlement (ISDS) system has come under scrutiny. Perceptions have arisen that ISDS is inconsistent, lacks transparency, and is simply unfair. This book delves into the ongoing worldwide debate and discussions regarding the ISDS system. Drawing contributors from around the world, the authors provide insights on critical topics and address the key question facing the ISDS system and the international community it serves: Should the present ISDS system be reformed, replaced, or simply remain as is? The contributors represent points of view ranging from academia to practice to governmental entities, addressing such topics as: the possible consequences of wholesale replacement or elimination of the current ISDS system; mediation as an alternative to resolve ISDS disputes; the creation of a multinational investment court or appellate review mechanism; lack of an early dismissal mechanism to eliminate meritless claims; issues regarding arbitrators, including their appointment and ethical obligations; how investors may retain their right to pursue claims for violations of investment protection following termination of an agreement; a State’s right to assert a counterclaim against an investor-claimant; the role of ISDS in promoting and protecting renewable energy production; the liability of State-controlled entities; the effects and implications of third-party funding; the duty to mitigate damages in the light of excessive damages awards; and improvements and issues relating to post-award enforcement, duration, and cost of ISDS. This book considers the ongoing deliberations and reform measures proposed by UNCITRAL’s Working Group III and provides insights into how several geographic regions and economic cooperation areas have sought to address the question of reform of the ISDS system, including the European Union, the Middle East, and the new United States-Mexico-Canada Agreement. With its much-needed and deeply informed balancing of investor and State rights and duties, this book will be welcomed by all who practise in the ISDS field, including arbitrators, State governments and non-governmental organizations, regional economic organizations, and international investors.