Increasing the use of alternative dispute resolution in IIAs

Recent years have confirmed that the international arbitration of investor-state disputes under IIAs is generally a lengthy and expensive affair. ¹ This fact, combined with the rapid multiplication of investor claims under IIAs, has led to calls in search of alternatives or complements to international arbitration. ² This chapter aims to contribute to this discussion, with an emphasis on the promotion of efficiency (including the reduction of transaction costs) but also of the public interest. The analysis focuses on the perspective of states—the perennial respondents in investor treaty-based claims—and on a specific point in time—when a state receives from a foreign investor a notice of intent to submit a claim to arbitration or a notice of arbitration. ³ This chapter demonstrates that, even at this juncture, many options could be considered by states to improve dispute resolution under IIAs. Further, it suggests ways in which future IIAs can better integrate alternatives and complements to international arbitration.