The United Nations Commission on International Trade Law (UNCITRAL) Working Group III on ISDS (Investor-State Dispute Settlement) Reform considers issues of adjudicator diversity to be an area of concern for the legitimacy of the ISDS system. Studies show that nearly all of the most prominent and repeatedly appointed arbitrators in ISDS cases are men from the Global North with significant prior experience in ISDS cases. Rather than being seen as fair, just, and devoid of bias, decisions are sometimes suspected to be the products of adjudicators who share a particular world view. This article focuses on four key issues: (1) how a lack diversity affects the real and perceived legitimacy of the ISDS system; (2) empirical evidence on the current extent of the diversity problem in ISDS; (3) the causes of the perpetuation of the diversity deficit in ISDS; and (4) what can be done to improve diversity in ISDS.
As discussions on the reform of investor-State dispute settlement deepen and gather momentum at the United Nations Commission on International Trade Law (UNCITRAL), this article delves into a specific and fundamental issue: the requirement that adjudicators in investment disputes are and remain independent and impartial. It begins by explaining the principle of independence and impartiality in international courts and tribunals, with a focus on arbitral institutions. The article then highlights a range of specific concerns that the present system of investor-State arbitration raises in respect of independence and impartiality. Finally, it provides a comparative analysis of how different reform proposals presently discussed within UNCITRAL Working Group III would fare in terms of delivering a dispute resolution mechanism that ensures independence and impartiality. Rather than providing one specific solution, this article assesses the different options discussed, with the aim to help both policy-makers considering reform and other stakeholders and scholars.
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