Research On Precedents In ICSID Arbitration

ICSID Arbitration is becoming the center of International Investment Law, promoting the FDI augment in various countries and protecting the benefit of numerous investors. However, the basic judicial style of ICSID is arbitration, its application of law, especially its paradoxical attitude towards precedent has become the fundamental reason which leads to the legitimate crisis. On the one hand, ICSID admits that determined cases are of values; on the other hand, it denies that these cases can function as precedents. This pragmatic attitude has caused paradoxical decisions, undermining the expectations towards ICSID and IIL, and even destructing the development of IIL. Consequently, constructing the Precedents System is an instructive way to solve the legitimate crisis in ICSID Arbitration.The first part of the thesis introduced the history of application of law in ICSID arbitration; elaborating the current ICSID judicial style is based on the BIT and quote the determined cases numerously. The second part utilized the empirical research methods, discussing the function of determined cases in ICSID arbitration, revealing the paradoxical attitude held by the tribunals. The third part describes the results of denying precedents. The forth part discussed the possibility of constructing precedents system, especially to ensure the substantial content of legal rule, which is analyzed on the basis of Umbrella Clause. The fifth part presented the suggestion of building the legal framework of precedents in ICSID Arbitration at various aspects.The innovation points in this thesis are as follows:First, the author utilizes the empirical research methodology to analyze, making a statistic analysis of almost all related and published ICSID arbitration decisions. Second, the author raises an innovative advice to build precedents in ICSID in order to resolve the legitimate crisis in International investment arbitration, also provides a solution to rule of law in International Investment Law and world governance. Third, in order to rectify the abuse of determined cases and inconsistent explanations of identical concept and rules, we have to turn to the precedents system, promoting its status and perfect its functions.