The European Union in International Investment Governance: a Hybrid Approach to Dispute Settlement

Investor-state dispute settlement and arbitration, in particular, stands at the centre of a process intended to reform the global regime of international investment treaties. The mechanism’s negative impact on public decision-making processes and its inherent shortcomings, such as an absence of tran...

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Main Author: Beatriz Pérez de las Heras
Format: Article
Language:English
Published: European Institute of Romania 2018-12-01
Series:Romanian Journal of European Affairs
Subjects:
Online Access:https://rjea.ier.gov.ro/wp-content/uploads/articole/RJEA_vol.18_no.2_December-2018_art5.pdf
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author Beatriz Pérez de las Heras
author_facet Beatriz Pérez de las Heras
author_sort Beatriz Pérez de las Heras
collection DOAJ
description Investor-state dispute settlement and arbitration, in particular, stands at the centre of a process intended to reform the global regime of international investment treaties. The mechanism’s negative impact on public decision-making processes and its inherent shortcomings, such as an absence of transparency and a lack of arbitrator independence, have impelled moves to redesign the system. As a leading actor in the international investment landscape, the European Union (EU) has proposed replacing traditional arbitration with a specific court system for each bilateral agreement containing investment arrangements. However, the proposed system retains key aspects of classic arbitration whilst posing as yet unresolved issues in relation to the interaction with the EU Court of Justice and the current institutions of international arbitration. Nevertheless, the EU’s initiative is intended merely as a transitional remedy, ultimately leading to a multilateral judicial institution that would bring greater consistency to the resolution of investment disputes. Though important for the contribution it makes to the current debate, the EU’s proposal has faced criticism for some crucial deficits. Therefore, if the EU’s project is to prosper, it must first be discussed and agreed upon as part of a broader agenda of investment governance reform at a global level.
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spelling doaj-art-fd678542e0504bfa905c5bbca624c13e2025-08-20T02:07:03ZengEuropean Institute of RomaniaRomanian Journal of European Affairs1582-82711841-42732018-12-011827793The European Union in International Investment Governance: a Hybrid Approach to Dispute SettlementBeatriz Pérez de las Heras0Professor of European Union Law at the University of Deusto (Spain)Investor-state dispute settlement and arbitration, in particular, stands at the centre of a process intended to reform the global regime of international investment treaties. The mechanism’s negative impact on public decision-making processes and its inherent shortcomings, such as an absence of transparency and a lack of arbitrator independence, have impelled moves to redesign the system. As a leading actor in the international investment landscape, the European Union (EU) has proposed replacing traditional arbitration with a specific court system for each bilateral agreement containing investment arrangements. However, the proposed system retains key aspects of classic arbitration whilst posing as yet unresolved issues in relation to the interaction with the EU Court of Justice and the current institutions of international arbitration. Nevertheless, the EU’s initiative is intended merely as a transitional remedy, ultimately leading to a multilateral judicial institution that would bring greater consistency to the resolution of investment disputes. Though important for the contribution it makes to the current debate, the EU’s proposal has faced criticism for some crucial deficits. Therefore, if the EU’s project is to prosper, it must first be discussed and agreed upon as part of a broader agenda of investment governance reform at a global level.https://rjea.ier.gov.ro/wp-content/uploads/articole/RJEA_vol.18_no.2_December-2018_art5.pdfinvestment treatiesinvestor-state dispute settlementarbitrationcourt systemmultilateral investment institution.
spellingShingle Beatriz Pérez de las Heras
The European Union in International Investment Governance: a Hybrid Approach to Dispute Settlement
Romanian Journal of European Affairs
investment treaties
investor-state dispute settlement
arbitration
court system
multilateral investment institution.
title The European Union in International Investment Governance: a Hybrid Approach to Dispute Settlement
title_full The European Union in International Investment Governance: a Hybrid Approach to Dispute Settlement
title_fullStr The European Union in International Investment Governance: a Hybrid Approach to Dispute Settlement
title_full_unstemmed The European Union in International Investment Governance: a Hybrid Approach to Dispute Settlement
title_short The European Union in International Investment Governance: a Hybrid Approach to Dispute Settlement
title_sort european union in international investment governance a hybrid approach to dispute settlement
topic investment treaties
investor-state dispute settlement
arbitration
court system
multilateral investment institution.
url https://rjea.ier.gov.ro/wp-content/uploads/articole/RJEA_vol.18_no.2_December-2018_art5.pdf
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