WTO Litigation, Investment Arbitration, and Commercial Arbitration, edited by Jorge A. Huerta-Goldman, Antoine Romanetti and Franz X. Stirnimann

Abstract

In recent decades, the number of fora for international trade disputes has grown remarkably. On the one hand, the WTO Dispute Settlement Body with its rule of law-based procedures has revolutionized the adjudication of multilateral trade disputes between states. On the other hand, private entities are increasingly suing states on the basis of investor–state dispute settlement mechanisms enshrined in the ever-increasing number of international investment agreements. In 2013, there were 3236 international investment agreements in total. Foreign investors initiated 56 new investment arbitrations, which is the second largest number of known investment arbitrations filed in a single year (UNCTAD, World Investment Report 2014). In addition, private parties continue to conclude contracts among themselves and investment contracts with host states that allow for the resolution of disputes between the parties in international arbitration. Depending on the adjudicative body called upon, different substantive law regimes apply. Whereas the WTO Dispute Settlement Body’s panel reports are based on WTO law, international investment arbitrations are subject to the particular treaty invoked by the respective foreign investor against the host state. Transnational commercial disputes are governed by the parties’ choice of law.