The World Trade Organization ( Wto ) And International Center For Settlement Of Investment Disputes

1129 Words Nov 15th, 2016 5 Pages
The past three decades have seen the spectacular development and spread of international rules governing trade and foreign direct investment (FDI) (Simmons, 2014). The World Trade Organization (WTO) and International Center for Settlement of Investment Disputes (ICSID) have provided a regulatory environment with two different kinds of dispute settlement systems for trade and FDI respectively. First, WTO, established in 1995 by the Marrakesh Agreement which concluded the Uruguay Round, regulates disputes between nation-states, while the ICSID and BITs are used to regulate exchanges between states and private sector investors. Second, WTO dispute settlement system is more centralized in a way that it is constituted as part of WTO multilateral regime, which provides more substantive and consistent regulations to resolve trade dispute (Simmons, 2014). However, the international investment regime has no single institution core. So, Investor-state arbitration in the ICSID is more decentralized in a way that the source of law applied under ICSID is generally supplied by the myriad treaties (Simmons, 2014). Third, the WTO dispute settlement system focuses on trade regulations between states. ICSID focuses on protections of investment and investors. Nowadays, both developed and developing countries have tied their hand to these dispute settlement systems, but why? In my opinion, first, both developed and developing countries benefits from trade and investment dispute settlements by…

Related Documents