Costs, Outcomes and Transparency in ISDS Arbitrations: Evidence for an Investment Treaty Parliamentary Inquiry

Abstract

This article draws on evidence presented at an Australian parliamentary inquiry into ratification of a major Asia-Pacific free trade agreement, focusing on the investment chapter and especially the vexed issue of investor-state dispute settlement (ISDS) arbitration. It outlines some rationales for ISDS-backed investment treaty commitments, and sets out empirical evidence about the usual costs, award amounts and transparency associated with ISDS, to contribute to more informed public debate in Australia and world-wide.

Keywords: foreign direct investment (FDI), dispute resolution, Asian law, international law, free trade agreements (FTAs), bilateral investment treaties (BITs), investor-state dispute settlement (ISDS), arbitration

JEL Classification: K10, K30