Study On The Mediation Mechanism Of The International Investment Disputes

One of the prominent influence of economic globalization in the field of international investment is the rapid development of international investment and trade.There are some complex investment and trade relations between multinational companies,host governments and private investors. Almost all of them are inevitably involved in the international economic affairs.But,the rapid development of international investment brings not only the prosperity of international trade and the high-speed flow of international capital, but also increasing numbers of international investment disputes which is not favorable to the development of both international and national economy.After the second world war,especially,the emerging independent countries that are struggling for the new economic and political order start to nationalize industries relating to the national economy and people’s livelihood.It causes some damages to other countries and private investors and brings a series of investment disputes.With the sign and take effect of the ICSID convention, we find a lot of ways to solve international investment disputes, and now, arbitration has become the most widely used way.However, after so many years, the international investment arbitration is not adapted to the actual situation of international investment disputes. More and more investors, host countries and international law scholars question this system, they begin to find ways to reform the international investment dispute settlement mechanism. Some scholars suggest that we should introduce ADR, such as mediation, into the dispute settlement system to solve the disadvantages of international investment dispute arbitration.So, if it is necessary and feasible to introduce mediation into the dispute settlement system? This paper uses six sections to discuss this question.Chapter I introduces the origin and development of international investment dispute settlement system.Also this chapter points out the problems that the contemporary investment disputes settlement system is facing. Chapter Ⅱ introduces the problems that investment dispute arbitration is facing in detail, such as the high arbitration fees and time costs, lacking of execution of the arbitration rule, impartiality of the arbitral award and the destruction of investment partnership, etc. Chapter Ⅲ includes a lot of empirical data, charts and pictures.This is used to demonstrates an increasing tendency of the current international investment disputes. This chapter is very important because it is a connecting link of this paper;based on the above hapters, Chapter Ⅳ suggests the most useful way to solve international investment disputes——Mediation. Also, this apter introduces the IBA mediation rule in detail; Chapter Ⅴ goes further to discuss whether the mediation can be mandatory and suggests a mediation clause in BITs; Chapter Ⅵ discusses the ongoing negotiation of China-United States BIT, introduces the development of the mediation system of both countries and studies the possibility and feasibility to introduce mediation clause into China-United States BIT.