The Legal Nature of the Permanent ISDS Institutions Promoted by the EU: Are They Arbitral Institutions or International Courts?

Öz

The EU has developed four separate treaties with Canada, Vietnam, Singapore and Mexico that envision the establishment of permanent dispute settlement institutions that will resolve investment disputes between investors and host States. The four treaties stipulate that decisions made by these permanent institutions, which will conduct two-tier proceedings with first instance and appeal bodies, shall be considered as arbitral awards. Whether these institutions, which have some features that resemble international courts, can be considered as arbitral institutions by non-party third states, so that their decisions can be enforced in those states as arbitral awards, is a debated issue. Although, unlike in typical arbitration, adjudicators will have pre-existing permanent judicial powers and investors will have no influence in their appointment, Article 1 (2) of the New York Convention appears to contain the necessary persuasive provision to convince courts of non-party third States to consider the decisions of, at least, the first-instance body that become final without being challenged as arbitral awards. Regarding the decisions made by the appeals body, convincing courts of non-party third states to consider them as arbitral awards appears to be more complicated. This will depend on whether these courts will interpret the provisions of their arbitration legislations, which, in line with the UNCITRAL Model Law, most likely provide that parties are free to determine the procedural rules to be followed by the arbitrators, as broadly as to allow the parties to agree that arbitrators other than those who rendered a preliminary award will review it.

Anahtar Kelimeler

• CETA
• EU-Mexico modernised EPA
• New York Convention of 1958 Article 1(2)
• lex arbitri
• seat of arbitration
• seat of proceedings
• waiver of annulment actions
• appeal mechanism
• UNCITRAL Model Law Article 19

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