International Dispute Settlement Research Articles

International investment disputes in the conditions of a pandemic

This article discusses theoretical and practical issues of investment disputes, as well as the role and role of arbitrators in dispute resolution. The legal significance of online arbitration in the context of a modern pandemic in resolving disputes, the scientific views of representatives of this field and some aspects of practice have been studied. Also, a scientific and practical analysis of the issue of enforcement by states and individuals of arbitration decisions on the settlement of international investment disputes, as well as international legal aspects was carried out.

‘Sharp Ears to Hear a Thunderclap’? The rise of mediation in the international dispute prevention and settlement system of the belt and road initiative

ABSTRACT The Convention on International Settlement Agreements Resulting from Mediation is one of the newest contributing factors to a virtuous circle upholding the foreseeable rise of mediation in cross-border business and investment disputes. This article analyses how the on-going institutionalization of the international dispute prevention and settlement system of the Belt and Road Initiative (BRI) is both being informed by, and is further contributing to, the global rise of mediation at a time when the international adjudicative system is in turmoil. The BRI is bound to generate a large number of complex international disputes ranging from international trade to investment and commercial disputes. This, in turn, has spurred two notable developments: 1) Chinese and regional arbitral institutions, legal regimes and investment treaty networks are currently adapting to better cater for the growing demand for commercial and investment arbitration in the context of the BRI. 2) The China International Commercial Court, which innovatively integrates ‘litigation, arbitration and mediation’ in its new ‘one-stop’ diversified settlement system, and a series of legal and institutional initiatives, namely the new International Commercial Dispute Prevention and Settlement Organization, are, in turn, paving the way for a greater use of mediation in cross-border business and investment disputes in the context of the BRI. This article examines these developments in the light of China’s broader relationship with international adjudication and elaborates on a number of arguments to help rationalising why mediation is gaining ground in the on-going institutionalization of the International Dispute Prevention and Settlement System of the BRI.

International Courts’ Shadow Effects and the Aims of Judicialized International Cooperation

In “Judicialization of the Sea: Bargaining in the Shadow of UNCLOS,” Sara Mitchell and Andrew Owsiak make a valuable contribution to an expanding body of scholarship that considers whether and how international courts have out-of-court “shadow effects.” The authors argue that, in the UN Convention on the Law of the Sea (UNCLOS) regime, the threat of binding international dispute settlement (IDS)—which entails high costs for states—encourages rational potential litigants to settle out of court through other peaceful and less costly IDS mechanisms. In this essay, I challenge the narrow focus of Mitchell and Owsiak's analysis, considering the diverse aims and processes of judicialized international cooperation in two key ways. First, the authors’ focus on peaceful IDS as the sole outcome of interest overlooks other important cooperation goals driving judicialization and delegation to international courts. An emphasis on out-of-court IDS, even when achieved peacefully, can actually undermine other objectives for judicialized international cooperation, including the development of international law and greater compliance with international law. Second, Mitchell and Oswiak's theoretical mechanism assumes that an international court contributes to its out-of-court influence through its case law, but this discounts how international courts can engage in a range of out-of-court, non-adjudicative activities that can affect potential litigants’ cost-benefit analyses regarding judicialized versus non-judicialized IDS. Indicating its preference for increasing its “direct effects” through adjudicating disputes, the International Tribunal for the Law of the Sea (ITLOS) has developed capacity-building and training programs to encourage judicialized IDS under UNCLOS and states’ litigation at the ITLOS. Overall, I highlight how there is a broad range of actors and processes underpinning international courts’ out-of-court effects, and how these actors and processes can work towards multiple, at times conflicting, aims for judicialized international cooperation.

The exhaustion of local judicial remedies in investor-state dispute settlement: a proposal for the African Continental Free Trade Agreement on Investment Protocol

ABSTRACT Over the past few years, the international Investor-State Dispute Settlement (ISDS) mechanisms have been confronted with an unprecedented level of scrutiny, and the system's legitimacy is being questioned by both developed and developing countries alike. This article presents a proposal for the adoption of the old customary international law rule of exhaustion of local remedies in the upcoming Investment Protocol of the African Contin en tal Free Trade Agreement (AfCFTA). It observes that the ISDS mechanism that will be developed under the AfCFTA framework is likely to be shaped by the legitimacy crisis in investment treaty arbitration and ongoing global debates about the reform of the ISDS mechanisms. In particular, the ISDS debate in the African region will continue to characterise and potentially derail the negotiations of the AfCFTA Protocol on Investment. The main contention is that adopting the exhaustion of local remedies under the AfCFTA Protocol on Investment before recourse is had to the ISDS is arguably the single reform with the greatest potential to foster a balanced investment dispute resolution mechanism and reduce political opposition to ISDS while still providing investors with access to ISDS when domestic remedies are inadequate. The article finally proposes a drafting suggestion for the adoption of the exhaustion of local remedies rule into the ISDS provision of the AfCFTA Protocol on Investment. Keywords: Exhaustion of local remedies; African Continental Free Trade Area; Investment Protocol; ISDS; African courts.

Compulsory jurisdiction under the law of the Sea Convention: its achievements and limits

Part XV of the United Nations Convention on the Law of the Sea (UNCLOS) establishes a special regime for the settlement of international disputes concerning its interpretation or application. Thanks to the mechanism of the enhanced compulsory jurisdiction provided by Section 2, various cases have been referred to the court or tribunals. Accumulation of the precedents has contributed to the clarification of the interpretation and application of the provisions relevant to the functions of the compulsory jurisdiction of international court and tribunals. This article examines the achievements and limits of the dispute settlement mechanism of Part XV. As far as the choice of the procedures in accordance with Article 287 is concerned, it is possible to say that the choice made by State Parties is respected as much as possible. Article 286 sets out the following requirements for a State Party to resort to the compulsory jurisdiction under Section 2: existence of a dispute concerning the interpretation or application of the UNCLOS; no settlement has been reached by recourse to Section 1; subject to the limitations and optional exceptions in accordance with Section 3. With regard to the first requirement, the ITLOS and arbitral tribunals have examined the subject-matter of the dispute before them and have tried to identify those concerning the interpretation or application of the UNCLOS. It is possible to say that examining the second requirement, the ITLOS and arbitral tribunals have emphasized the sound function of the compulsory dispute settlement mechanism under Section 2. As the third requirement relates to the scope of the compulsory jurisdiction of the court and tribunals, the ITLOS and arbitral tribunals have strictly interpreted the terms of Articles 297 and 298. Their Strict interpretation have allowed the Applicant to resort to the compulsory dispute settlement under Section 2. It is also necessary to note the strategic use of Article 300 in the arguments concerning the breach of the obligations under the UNCLOS in various precedents.

Evolution and content of the principle of peaceful settlement of international disputes in International Law

This article introduces a brief outline of the inter-State conflict types. The evaluation considers the principle of peaceful disputes’ settlement evolution from antiquity to the present based on the legal analysis of historical and international legal sources. The article looks at the content of this principle and a comparative legal study of peaceful dispute resolution laid down in the UN Charter and other international legal instruments. The authors conclude that the peaceful international disputes settlement is a complex, integrated principle with several interrelated elements and the content incorporated in various international legal instruments. The article highlights the vital role of appropriate freedom of States to choose the remedies of settling their disputes. This right is a corollary to two interrelated international law principles – the sovereign equality of states and non-interference in matters within their domestic jurisdiction.

Nationality and Representation in the Composition of the International Bench: Lessons from the Practice of International Courts and Tribunals and Policy Options for the Multilateral Investment Court

There is little doubt that the nationality of the international adjudicator matters. Judges sitting on international courts have often arrived on the bench after a career in government and may identify with the interests of their home state. Empirical data shows that a judge called to decide a case involving the state of his or her nationality (national judge) tends to vote in its favour. Yet nationality is not only relevant as an argument to discredit a judge who is seen as partial to his or her home state: it also confers legitimacy on international dispute settlement. International courts must be representative of their membership and representation calls for the inclusion of diverse nationalities in their ranks. In light of the ongoing efforts to establish a multilateral investment court, the paper considers nationality and representation in the composition of international courts and tribunals. It reviews, on the one hand, nationality and geographical representation on the court as a whole and, on the other, the presence of national judges and judges ad hoc in specific chambers or divisions. The paper assesses the reasons that lead different courts and tribunals to regulate nationality and representation differently, it analyses newly-collected data and draws normative conclusions. Ultimately, it makes policy suggestions for the multilateral investment court. Its overarching thesis is that an international court must be representative of its membership but that the presence of national judges and judges ad hoc in particular chambers or divisions depends on the function of a court. In relation to the multilateral investment court, the paper expresses scepticism about the presence of national judges and judges ad hoc in divisions of three constituted to decide investor-state disputes.

The Proliferation of Courts and Tribunals: Navigating Multiple Proceedings – 5th EFILA Annual Lecture 2019

Recognising that the settlement of international disputes has always been and continues to be characterised by its plurality, this lecture explores the different ways to achieve a coordinated dispute resolution process, with particular reference to investment disputes. Some of these means come into play at the time of the referral to the courts, thus preventing a situation of multiple proceedings from occurring. Others operate downstream of the referral, in order to coordinate the multiple proceedings arising from the same dispute. The lecture then concludes with an examination of the legal foundations underlying the use of these means.

International commercial arbitration in Uzbekistan: current state and development prospects

This article is devoted to a number of issues relating to the functioning of international commercial arbitration as a non-State mechanism for the settlement of international commercial disputes in the Republic of Uzbekistan. In article also found a brief introduction on the history of arbitration in Uzbekistan since its independence. Special attention is paid to the rules introduced since the entry into force of the Law of the Republic of Uzbekistan “On international commercial arbitration”. Moreover, the author highlights some problematic issues and inconsistencies that exist in the legislation on legal proceedings in arbitration courts. The author also addresses several issues regarding the recognition and enforcement of arbitral awards.

The People’s Republic of China and the Development of Contemporary International Law: Review and Prospects

The development of Chinese international jurisprudence over the past 70 years can be divided into three stages: fledging; recovery and development; and flourishing. During the period, Chinese international lawyers have made great contributions to the development of international law through, inter alia, the Five Principles of Peaceful Co-existence, recognition and succession, the peaceful settlement of international disputes, the Belt and Road Initiative, the Shared Future for Mankind, and so forth. However, participation in international legislation and international judicial activities needs to be further improved, because the theoretical ground for China’s foreign policy and diplomatic practice is still insufficient and academic works with global influence are not enough yet. The development of Chinese international law follows such trends: more valuable interpretation and application of international law; the theoretical innovation of international law; and the improvement of China’s discourse power. These are important missions for Chinese international lawyers.

The Inter-State Application under the European Convention on Human Rights: Between Collective Enforcement of Human Rights and International Dispute Settlement, written by Isabella Risini

The Inter-State Application under the European Convention on Human Rights: Between Collective Enforcement of Human Rights and International Dispute Settlement, written by Isabella Risini

Extending Trade Law Precedent

Precedent is celebrated as a fundamental feature of dense legal systems as it creates predictability, builds coherence, and enhances the authority of courts and tribunals. But, in international adjudication, precedent can also affect interstate cooperation and ultimately the legitimacy of international organizations. Wary of this, most international dispute settlement systems are designed so that rulings do not set obligatory precedent. In this Article, we describe the role of precedent in the Appellate Body (AB) of the World Trade Organization (WTO) to explain how precedent can affect compliance with the decisions of international courts and tribunals (ICs). We make two main contributions. First, we show that there can be precedent without a formal stare decisis rule. In theory the AB has a rule against binding precedent. Based on empirical evidence, however, we show that the AB has in fact a strong norm of relying on prior decisions. Second, we show that over time, the widening of legal commitments can result from extending precedent to new situations and this has an impact on the ability or willingness of states to comply. Our findings have implications for the WTO and beyond. For the WTO, we note that efforts to better define the value of precedent is unlikely to resolve the general mistrust of the AB and therefore, we propose other solutions to control the drift resulting from precedent. Beyond the WTO, we note that international scholars should account for the inter-temporal dimension of legal commitments in analyzing and explaining compliance with international law.

Dispute Settlement Mechanisms Provided by the Association Agreements Concluded By the European Union with Third Countries

International dispute settlement and international relations both have a long history. All EU association agreements have appropriate dispute settlement mechanisms, which differ to some extent. The main task of this study is to determine the international legal mechanisms for resolving disputes included in the Association Agreement between the EU and Ukraine. Furthermore, the purpose of the study becomes especially relevant in the context of the process of resolving the Ukraine-EU trade dispute on national restrictions on timber exports, which is the first dispute in Ukrainian practice. A comparison of the various treaty principles of EU cooperation with third countries suggests that the highest level of protection of individuals through the functioning of the dispute settlement mechanism is described by association agreements, and some of them even resemble an "arbitration clause". It was found that the criteria of comparative analysis were the types of dispute resolution mechanisms, consultation procedures and arbitration procedure, mediation procedure and rules of procedure. According to these criteria, it was found that the association agreements contain almost identical provisions on consultation procedures and arbitration, with the exception of some agreements where arbitration is presented on a narrower scale. The provisions on mediation procedures in the submitted agreements are almost identical to the Code of Conduct for Arbitrators and the Rules of Procedure, which serve as template documents duplicated in the various agreements. The association agreements between the EU and Ukraine, Georgia, and Moldova are analysed in detail, and common and distinctive features are described. Differences in the details of dispute settlement mechanisms may indicate that the parties have concerns about the likelihood and intensity of disputes. The Association Agreement between Ukraine and the EU for the settlement of disputes makes provision for the use of various methods: consultations, arbitration, the establishment of an arbitration panel. Particular attention is paid to the analysis of the first case of a trade dispute, which is resolved with the use of the arbitration procedure under the Association Agreement with Ukraine on the export of raw wood

Not Like the Others? The Position of Associated States and Dependent Territories in Fishing Disputes

Abstract Fisheries are of vital concern to associated states and dependent territories located in diverse regions ranging from the Pacific to the Atlantic. The special characteristics of these actors have led to innovative international law-making, including the terms that have been agreed within regional fisheries management organizations and arrangements to facilitate representation of non-metropolitan territories’ interests. The question may be raised whether similar innovations can be found in the field of international dispute resolution. The aim of this brief article is to consider some linkages between associated states and dependent territories on the one hand and international dispute settlement concerning fishing on the other. Four such connections will be examined in turn: access to court, representation in proceedings, applicable law in proceedings, and the territorial exclusion of disputes.

The Snow Crab Dispute on the Continental Shelf of Svalbard: A Case-Study on Options for the Settlement of International Fisheries Access Disputes

Abstract Disputes concerning access to fisheries within national jurisdiction can be drivers of illegal, unreported, and unregulated (IUU) fishing. International courts and tribunals may play an important role in settling certain categories of fisheries access disputes and in clarifying the applicable legal framework. This article explores international dispute settlement options for the dispute between the European Union (EU) and Norway over access to the snow crab fishery in Svalbard’s waters as an example of a complex fisheries access dispute. In doing so, it considers the potential and limits of: 1) the compulsory dispute settlement mechanism under Section 2 of Part XV of the 1982 United Nations Convention on the Law of the Sea (UNCLOS) and 2) litigation before the International Court of Justice (ICJ).

International Courts and Tribunals – the New Environmental Sentinels in International Law

This study examines the role of international courts and tribunals (ICTs) as important agents for the peaceful settlement of international disputes through the instrumentality of law. The rapid upswing in the number of specialised international courts and tribunals (in areas such as trade, human rights, law of the sea, criminal justice and environment) can be perceived as an attempt by sovereign States to maintain the viability of ICTs in light of perplexity in international relations, growing recognition of peaceful co-existence, quest for institutionalised cooperation and emergence of some of the “common concerns of humankind”, as well as the “duty to cooperate”. The article has sought to make sense of the emergence of ICTs as the “New Environmental Sentinels” and what it portends for our common future. Do we need a specialised international environmental court?

The Inter-State Application under the European Convention on Human Rights: Between Collective Enforcement of Human Rights and International Dispute Settlement. By Isabella Risini

The Inter-State Application under the European Convention on Human Rights: Between Collective Enforcement of Human Rights and International Dispute Settlement. By Isabella Risini

Expanding Asia-Pacific Frontiers for International Dispute Resolution: Conclusions and Recommendations

Asia’s emergence as a global economic powerhouse has corresponded with a prolonged upward trend in international commercial arbitration (ICA) cases involving Asian parties, as well as a belated expansion of investor-state dispute settlement (ISDS) arbitrations involving Asian states or investors. Further accelerating the eastward shift in international dispute resolution, various initiatives to improve support for ICA and ISDS have been taken and alternatives (such as international commercial courts and international commercial mediation) have been promoted. This book aimed to examine significant ‘new frontiers’ for Asia-Pacific cross-border business dispute resolution, focusing on major economies in East and South Asia and countries (such as Australia) that are closely linked economically and geographically. The principal questions posed were: (1) whether existing and new venues for ICA could improve their attractiveness through law reform, case law development, and other measures, despite worries about cost and delay; (2) whether emerging concerns about ISDS-backed investment treaty commitments would prompt Asian states to become rule-makers in international investment law, rather than be mere rule-takers; and (3) whether innovations in existing or new fields might assist the Asia-Pacific region to develop international dispute settlement further. The foregoing chapters have discussed these broad themes, focusing on developments in Australia, Japan, Hong Kong, China, India and Malaysia, while paying attention to broader regional initiatives (such as China’s Belt and Road Initiative (BRI)) and recent international instruments (such as the Singapore Convention on Mediation (entering in force from 12 September 2020 )). This concluding chapter highlights key findings in the individual chapters and identifies some challenges for the post COVID-19 era.

Does the Single Draft of COC in the South China Sea Matters?

This paper attempts to elaborate on the impact of the Single Draft of CoC in resolving the South China Sea (SCS) dispute. This paper uses the concept of International Dispute Settlement Procedures (IDSPs), where the parties try to resolve problems based on international law. This paper argues that countries in the region have been trying to have CoC mechanisms since the 1990s. Although in 2018, the ASEAN countries and China agreed on a Single Draft of CoC in the SCS, however the settlement of the SCS dispute is far from over. The CoC Single Draft is only a collection of ASEAN and China proposals. The Single Draft weaknesses in terms of legal status are they do not clearly state the obligations of each country to add or withdraw their respective proposals.

Fragmentation or Coherence? Does International Dispute Settlement Achieve Comprehensive Justice?

The debate about whether international law is fragmented or coherent is no arid discussion. If fragmentation is in the ascendancy, many commentators argue that something needs to be done. It is, of course, vital for the success of any legal system to achieve some level of predictability and certainty and to consistently deliver comprehensive justice. A legal system must, first and foremost, be a justice system, if there is any point to its existence. If it is not, then there may be another debate about whether it may be called a ‘legal’ system or a ‘justice’ system at all. I will review the debate between various leading commentators and analyse their proposals. My review of a number of different aspects and areas of international law shows that although fragmentation is apparent, the level of coherence in international law is far more surprising than fragmentation, which is inevitable, just as it is in the development of national law in, say, a federal polity. Just when international law seems to be fragmented somewhere, coherence is being achieved elsewhere. The result may be characterised as a kind of ‘equilibrium’ in which antagonistic and cohesive forces in international law keep one another in check, somehow balancing the other out. International law is capable of delivering comprehensive justice even if, at times, it may seem unlikely or elusive.