The Comparative Analysis Of WTO Dispute Settlement Mechanism And ICSID Mechanism

With the rapid growing of international investment on amount and size,the causes of investment disputes are becoming more and more complex and parties involved in investment disputes are much more diversified.The international investment disputes are on the trend to be more frequent and complicated because of all these factors.There are two main dispute settlement mechanisms that represent the current international dispute settlement mechanisms,the WTO Dispute Settlement Mechanism and ICSID Mechanism.Although both of them have rich experiences in handling dispute settlements and are still widely used,they are always criticized because of their shortcomings found in practice.Therefore,there is great necessity for them to be continued.The thesis will analyze both advantages and disadvantages of WTO Dispute Settlement Mechanism and ICSID Mechanism,and point out advantages that can be learned from each other.Additionally,it will also give some direction to the construction of the "One Belt and One Road" dispute settlement mechanism.The first part of this thesis is the introduction,which mainly explains the background and research ideas.Because of the increasingly complexity of national investment dispute settlement environment,the WTO dispute settlement mechanism and the ICSID mechanism are trapped in their original systems and suffer from various drawbacks.This thesis intends to figure out their respective advantages and defects by comparing and analyzing these two mechanisms,in order to propose suggestions for improving the existing dispute resolution mechanisms.The second part focuses on the advantages and disadvantages of the WTO dispute settlement mechanism.The WTO dispute settlement mechanism is effective,reasonable.It has diversified dispute resolution and emphasis on non-judicial means,creation of an appeal mechanism for innovation,enforcement strength.However,DSB does not enjoy the right of deciding whether the third party can join the negotiation process,the mitigation impedes the panel process,the inexperience of the expert group and the heavy workload,the limited review of the appeal mechanism,and the lack of monetary compensation during implementation,are all deficiencies.The third section outlines the advantages and disadvantages of the ICSID mechanism.ICSID has the advantages of establishing a delocalization system,adhering to the "non-politicized" solution under the principle of "fairness and justice,"and admitting and executing awards with considerable coercive power.However,there is also an unclear jurisdictional agreement and the existence of "no arbitrage arbitration".Legitimacy crisis,over-protection of investors' interests,lack of consistency in arbitral awards,difficulty in guaranteeing the fairness of the outcome of the supervision system,and duration length of trials are also its defects.The fourth part will compare differences between the WTO dispute settlement mechanism and the ICSID mechanism by focusing on the two major aspects of institutional differences and procedural differences.The system differences are mainly reflected in the jurisdictional system,the scope of third parties,the composition and independence of adjudicators,and the procedural differences are focused on the application of laws,time restriction of dispute resolution,friendly consultation procedures,content and implementation of awards,and so on.The fifth part is the mutual reference of the two dispute settlement mechanisms and the implications for the construction of the "Belt and Road" dispute settlement mechanism.The WTO dispute settlement mechanism can learn from the ICSID mechanism to expand the jurisdiction of international investment cases,improve the court friend system,strengthen compensation,and increase cash compensation.The ICSID mechanism can use the WTO dispute settlement mechanism to improve the efficiency of arbitration,introduce mid-term review procedures,and establish an appeal mechanism.Inspired by the mutual reference of the two mechanisms,the construction of the“One Belt and One Road" dispute settlement mechanism can also be started from three aspects:principle orientation,and concrete procedure and system.