Dispute settlement clauses in model bits: Traditional clauses and new trends

Abstract

This paper addresses those provisions in model BITs relating dispute settlement procedures, particularly provisions under the following two mechanisms: on the one hand, mechanisms for the settlement of disputes between contracting parties concerning the interpretation or application of the BIT; on the other hand, mechanisms for investor-State dispute settlement. An increasing number of States include in their model BITs precise and detailed procedural provisions, especially as to clauses for the settlement of disputes between the investor and the host State. In this sense, the trend moves towards States introducing flexibility in certain elements of the most common procedural provisions in model BITS. Likewise, the most significant innovations may be appreciated in model BITs of North-American States referring to the promotion of transparency and procedural economy in investor-State arbitration.