Advantages And Disadvantages Of International Arbitration

As the international trade and investment volume increased over the last decades, many countries have come to adjust their legislations according to the flow of the investment which is affected economic, political and environmental conditions. Subsequently, as an indirect result of the growing foreign investment, the disputes arising out of the foreign investments and how the treaty disputes will be solved gained itself a wide interest. To address this issue, international arbitration has been presented as a reassuring solution for the foreign investors and host states since it claims to provide an equal and neutral treatment of the parties involved in a dispute, which is necessary for the economic and political well-being of the international relations. With the large number of foreign investments and the Bilateral Investment Treaties that are signed in order to attract them, its impact on the international relations becomes more and more apparent, consequently, dispute settlement undoubtedly rises as an important subject. Nevertheless, arbitration has received both appraisal and criticism from both parties and non-parties in terms of its efficiency and fairness in investment treaty disputes. At the same time, critics of the arbitration system made claims about the mechanism and the credibility and others commented that it takes long time to finalize and the dispute resolution through international arbitration is an expensive way especially the adverse awards which may