Abstract

Investor-State dispute settlement (ISDS) has become one of the most contested features of international investment law. While much of the contemporary debate has focused on institutional redesign less attention has been paid to interest-based mechanisms such as mediation. This article examines investment mediation as a component of ISDS reform through the lens of Dispute System Design, with particular attention to the European Union's evolving yet inconsistent approach. Although the EU has increasingly incorporated mediation mechanisms into its recent international investment agreements, it has refrained from acceding to the Singapore Convention on Mediation, despite the Convention's potential to address the longstanding enforcement gap associated with mediated settlements. By analysing treaty practice, institutional developments, and the EU's position within the broader reform agenda, this article argues that the absence of a reliable enforcement framework undermines the practical effectiveness of investment mediation and weakens the coherence of the EU's reform strategy.

This paper will be part of the TDM Special Issue on "Dispute Prevention in ISDS: Comparative Approaches, Institutional Innovations, and Digital Tools". More information here www.transnational-dispute-management.com/news.asp?key=2086