Jurisprudential Analysis of Precedents Invoked in International Investment Arbitration

Abstract

With the increase of international investment arbitration cases and the development of arbitration practice, it is more common for arbitral tribunals to invoke precedents to explain the meaning of clauses and make judgments. However, many problems need to be solved in the process of invoking precedents. This paper starts from the jurisprudential analysis of invoking precedent in investment arbitration, analyzes the reasons why it is difficult for the arbitral tribunal to set aside it in practice on the basis of distinguishing the nature of invoking precedent, and then points out the doubts about the legality of the award made by invoking precedent, the intensification of the contradiction between the accuracy and consistency of the award results, and the resulting issues of the will of the respondent State. After analyzing the causes of these problems, the paper proposes to support the arbitral tribunal’s act of invoking precedents on the basis of improving the sources of international law, and strengthen the States parties’ interference in the interpretation of treaties by various methods, so that precedents can be applied more reasonably in international investment arbitration, and at the same time avoid the adverse effects of its improper application on international investment arbitration.