UNCTAD's Roadmap for IIA Reform of Investment Dispute Settlement

Abstract

International investment law is undergoing a time of reflection, review and revision. Increasing dissatisfaction with the functioning of the current system that governs the protection of international investment and the wish to ensure that investment is channelled towards sustainable development goals have led to an understanding that there is an urgent need for reform. As the United Nations focal point for investment and sustainable development, the United Nations Conference on Trade and Development (UNCTAD) has supported the development of a new generation of investment policies. The need for improved investment dispute settlement is at the heart of the new generation of international investment agreements (IIAs). UNCTAD’s Roadmap for IIA Reform identifies two broad alternatives: the first one is to live with investor-State dispute settlement (ISDS) by reforming it, and the second one is to abandon and/or replace it with other dispute resolution mechanisms. This article focusses on these options, considering their respective advantages and disadvantages.

Keywords: United Nations Conference on Trade and Development, Roadmap for Reform, International Investment Agreements (IIAs), Investor-State Dispute Settlement (ISDS), Reform of Investment Law

JEL Classification: F02, F13, F21, F53, K41, K39, K40, K10, K33, K49, K12, K19, K20, K29, H70, E22, H87, F50, F52