The Research Of Legal Problems On Investment Dispute Arbitration Of Regional Trade Arrangement

Since the agreement on investment of CAFTA taking effect in15August2009, the dispute between a natural person and a nation hasstepped into CAFTA for the first time. The investor from a nation can askfor compensation from the host nation directly through applyinginternational arbitration, which will be a great threat and challenge to theeconomic sovereignty of the host nation. However, such a seeminglydangerous and illegitimate investment arbitration mechanism hasimplemented for nearly20years in NAFTA. The trend of regionalinvestment liberalization cannot be stopped, therefore, the mechanism ofregional investment dispute arbitration will move forward continuouslyinstead of being abandoned. So how to maintain the balance betweenprotecting the interests of the investor to promote regional investment andavoiding excessive prosecution to protect the sovereignty will be animportant guarantee of achieving the regional investment agreement’sgoal. The essay tries to proceed with specific legal problems, find the factors that would break the balance next, and draw on the good or badexperience of NAFTA’ s Article11.Finally some advice to improve theinvestment arbitration rules of CAFTA will be written.The essay has more than30,000words and divided into four partsexcept the introduction.The first part mentions the jurisdiction of investment disputearbitration. And the issue contains three essential factors. Reflecting asthe subject—to confirm the nationality of the investor; the object—therange of invest and measures which bring about the dispute; thesubjective—the approval on the arbitration. Then some advice such ascontinuous nationality principle should be strictly used in CAFTA, therange of investment should be shrunk, remove “of general application”before “measures” and draw on the experience of “waiver clause” wouldbe given.The second part involves the applicable law. By analyzing the lawapplication rules of NAFTA and China—ASEAN countries BIT s, the writer will put forward a suggestion to formulate an integrative lawapplication rule.The third part mentions the procedure of investment arbitration and itstransparency. In this section to improve the procedure rules of CAFTAwill be written first. Then the writer will analyze the need of transparencyin RTA’s investment arbitration procedure and the meaning, meanwhilethe defect of “the friend of the court” in NAFTA.The last part mainly covers the enforcement of arbitration,supervision and appeal against the investment appeal. The writer willbring up an assumption to construct a mechanism of appeal through thestudy on improving arbitration enforcement and the insufficient ofarbitration supervision in RTA.