Abstract

The investor-state dispute settlement mechanism, which is a unique feature of Bilateral Investment Treaties (BITs) is often described as a double edged sword. It gives investors the right to bring a claim against a state for breach of treaty provisions, thereby giving them direct means to seek redress. On the other hand, such a mechanism may also open the floodgates for frivolous claims which may result in a waste of public funds, and threaten the state's power as a sovereign to regulate and to implement reforms within its territory. In some cases, investors seek ...