Investor-State Arbitration Under Bilateral Trade and Investment Agreements: Finding Rhythm in Inconsistent Drumbeats

Abstract

The investor-state arbitration process has been commonly used under bilateral trade and investment agreements since first adopted by the North American Free Trade Agreement (NAFTA) in 1994.This mechanism has well served the investment interests of multinational corporations. In recent times, some countries have been rethinking the special legal rights offered to foreign investors over domestic investors in dispute resolution through the investor-state arbitration process. This article examines the changing landscape in investor-state dispute resolution and its impact on bilateral trade and investment agreements.