State-to-state Arbitration based on International Investment Agreements

This book discusses theuse ofthecompromissory clause in international investment agreements (IIAs) forinterstate dispute resolution. It puts forward thepossibility ofusing state-to-state arbitration based onthecompromissory clause in IIAs as an alternative means ofresolving investment disputes in light oftheglobal debate ontheshortcomings ofinvestor-state arbitration. Thebook's main conclusion is that state-to-state arbitration may be used as an alternative tocurrently popular investor-state arbitration by resolving procedural hurdles which impede its acceptance. It becomes more important withtheremoval ofinvestor-state arbitration as an option in certain recent IIAs, which then elevates state-to-state arbitration as thesole option forbinding third party dispute resolution in thetreaty. Even then, it is unlikely toreplace investor-state arbitration completely due toits inherent shortcomings, such as therisk ofre-politicising disputes and a lack ofdirect control over theprocess fortheaffected investors. Nevertheless, theavailability ofan alternative forum will benefit all parties involved, as they will no longer be wholly dependent oninvestor-state arbitration, which can be affected byevents such as denunciation fromtheICSID Convention or therefusal ofa host state toenforce an arbitration award.