Multi-fora Litigation and the Recharacterisation of Investment Disputes in Light of the Investor-State Dispute Settlement Reform

Abstract In the field of international investment, there is a high propensity to litigate in different fora and to initiate multiple proceedings on the same or related disputes. These procedural tactics may have negative consequences for the effectiveness of the Investor-State Dispute Settlement ( ISDS ) system. For example, multiple proceedings may lead to inconsistent decisions, double recovery, duplication of costs and efforts, and imbalance between the parties. For several years, the United Nations Commission on International Trade Law ( UNCITRAL ) and the International Centre for Settlement of Investment Disputes ( ICSID ) have been working to reform the ISDS system to improve its effectiveness. This article examines how these legal challenges have been addressed in the context of the proposals set out in the Draft Provisions on Procedural and Cross-Cutting Issues.