Transparency Of International Investment Arbitration Research

Treaty-based investor-state arbitration has been widely adopted as an efficient solution to international investment disputes. Since its first appearance in 1960s known as the establishment of International Centre for Settlement of Investment Disputes, the investor-state arbitration system has born a long-time accusation of lacking transparency, which directly results in overprotecting the foreign investors and ignoring public interest of the host states. This problem is usually referred as Legitimacy Crisis and to solve such crisis; to increase the transparency of investor-state arbitration is recognized as an important solution.The latest academic research regarding this issue shows that the transparency should be achieved through two methods: the appropriate disclosure of relevant paperwork including the arbitral awards and a reasonable participation of Amicus Curiae (Friends of Court). By increasing the transparency, international public will have confidence in arbitration as a useful solution to international investment disputes; more accurate readings of host state's investment policy can be realized and a long-term stable investment environment and healthy bilateral investment relations will be easier to achieve.This article will provide a detailed analysis of the latest development of some most important institutions and arbitration rules on the transparency issue including the International Centre of Settlement for Investment Disputes, the United Nations Commission on International Trade Law and the North America Free Trade Agreement. These analyses mainly discuss and propose suggestions on the depth and width of transparency reform. This article proves that while conflicting with the basic arbitral principle of privacy, transparency can coexists with privacy; the article also regards the principle of privacy as the cardinal principal while transparency shall be monitored to a moderate level. In the last chapter, this article points out that China will be inevitably involved in the transparency reform trend and China should be prepared and actively participated in this reform.