Improving investor-state dispute resolution in international investment agreements: The US Supreme Court adds fuel to fire

• Main Author: PULLE, Austin Ignatius
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: ISDS; investment treaties; Argentina; Vienna Convention Law of Treaties; local remedies; arbitrator bias; consent to arbitration; Arbitrator Jurisdiction; UNCITRAL Arbitration; Convention Award; Dispute Resolution and Arbitration; International Trade Law
• Online Access: https://ink.library.smu.edu.sg/sol_research/2326
• Institution: Singapore Management University

In BG Group v Argentina, the American Supreme Court upheld an arbitral award rendered by arbitrators in favor of an investor who had bypassed the applicable dispute resolution procedures in the bilateral investment treaty. Instead of applying the Vienna Convention on the Law of Treaties which was the applicable law, the Court upheld the use of American law rules of interpretation applicable to private commercial contracts. This decision refocuses attention of the defects of investor-state dispute resolution systems and the pro-investor bias of arbitrators.