5 - Investment Treaty Arbitration

Summary

Chapter 5 analyses the three challenges facing international tribunals considered in this book in investment treaty arbitration. Regarding the challenge of managing change, investment treaty arbitration displays similarities and differences with the inter-State tribunals studied. Using the example of the minimum standard of treatment, the chapter shows that like the inter-State tribunals studied, investment treaty tribunals contribute to broader processes of change in international legal norms. Yet differently from the other tribunals studied, investment treaty arbitration has an overriding focus on determining the permissible degree of change in host State regulation. In relation to scrutinising State conduct for compliance with international law, investment treaty arbitration raises comparable questions to the other international tribunals studied regarding the appropriate intensity of review and the methods of review used by adjudicators. Finally, the chapter considers why, unlike the inter-State tribunals studied, investment treaty tribunals rarely adjudicate in a facilitative, forward-looking manner that aims to complement post-adjudication cooperation between the parties.