Research On Appellate Mechanism Of International Investment Arbitration

Along with the process of economic globalization, and international investment becoming the main mode of international economic communication, the past decades saw a dramatic upsurge in the number of investment dispute cases. Arbitration of investment disputes, which has greatly developed during this time, has made significant achievements in the field of investor-state dispute settlement. However, as time goes on, its limitations become more and more obvious. The lack of review mechanisms has resulted in inconsistent awards in investor-state disputes and has brought serious challenges to the sovereignty of host states, which are together called"the legitimacy problems of international investment disputes arbitration".Establishing an appellate mechanism under BITs, therefore, was advocated in the USA. In 2004, ICSID Secretariat also released a discussion paper, which talked about the establishment of an appellate mechanism in ICSID.This paper firstly researches on the legitimacy crisis of international investment arbitration and the development of appellate mechanism under investment arbitration system, and then analyzes appellate mechanism in domestic and international arbitration system and WTO. At the end of this paper, basic principles and system design about establishing an appellate mechanism in ICSID are discussed.