The United Nations Commission on International Trade Law (“UNCITRAL” or “Commission”) is currently deliberating on a comprehensive reform of the system for investor-State dispute settlement (“ISDS”) as it has been set up and operating in the last 60 years.
ISDS provides a forum for foreign investors to bring claims against the host State to international arbitration tribunals. It was created with the aim of enhancing confidence in the stability of the investment environment primarily in developing countries. More than 3,000 IIAs are in force today. In parallel to the increase in the global web of treaties, the number of ISDS cases brought by foreign investors against States under these IIAs has continued to increase, and passed the 1,000 mark in 2020.