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ARTICLE · 12 SEPTEMBER 2019

Recent Developments In ISDS Reform

Investor-State dispute settlement (ISDS) is an important feature of investment treaties. ISDS, the procedural mechanism through which

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The big picture

Introduction

Investor-State dispute settlement (ISDS) is an important feature of investment treaties. ISDS, the procedural mechanism through which an investor may claim compensation for a violation of a substantive investor-protection standard, be it included in a bilateral investment treaty (BIT) or a trade treaty with investment protections, determines the robustness of those protections. The traditional mechanism (investment arbitration between the investor and the host State, modelled on commercial arbitration) has been under attack for some time now from a range of actors and for a variety of reasons. Hostility to the traditional model, which has spread from the academic realm to the political stage, has led to changes in individual treaties and wider reform initiatives.

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