The debate on the reform of arbitration as investor-State dispute settlement method and the alternatives of an appellate mechanism and a multilateral investment court

Abstract

Analyzes the current debate regarding the need for reform of arbitration as the preferred method to solve disputes between States and private investors, more specifically regarding the proposals of an appellate mechanism and a multilateral investment court. It presents the novelty of bringing international regime theory into that discussion in order to highlight the idea that the underlying political balance has shifted towards substantially less tolerance of ad-hoc arbitration as an efficient mechanism to solve investor-State disputes. It reviews the main arguments in favor and against of an appellate mechanism and concludes by suggesting how these considerations are necessary in order to reach a legitimate definition of Peru`s position regarding this issue in the current international debate.