Our Spanish face, Laura Lozano highlights recent developments in investor-state disputes. The International Bar Association (IBA) adopted new Rules for Investor State Mediation the past October 4th. Provided there is written consent to arbitration, investment disputes are normally solved with arbitration. However, it is a reality that state arbitration is getting way too expensive and lengthy[1]. Likewise, amicable settlement methods such as negotiation, conciliation and mediation, are increasingly contemplated in BITs. Therefore, the IBA has wisely adopted measures to increase the use of mediation in investor-state disputes.
Divided into 12 articles, the Rules facilitate the resolution of disputes concerning States and States' entities. For the first time, the process for commencement of mediation is clearly established. Besides, the Rules deal with the appointment of a mediator in the absence of party agreement. Interestingly, the Rules consider the “Mediation Management Conference” for effectively getting the mediation started. And last but not least, the Rules include three Appendices that address the Model Statement of Independence and Availability, the Qualifications for Mediator and the Choice of Mediator though designating authority.
For further information regarding the IBA Rules for Investor State Mediation, please visit the IBA Mediation Committee http://www.ibanet.org/LPD/Dispute_Resolution_Section/Mediation/Default.aspx
[1] The arbitration proceeding in El Paso (ICSID Case No. ARB/03/15) took over eight years. 12 June 2003 (ICSID Registration); 6 February 2004 (Tribunal constituted); 8 April 2005 (hearing on jurisdiction); 27 April 2006 (Decision on Jurisdiction); June 2007 (hearing on the merits); June 2009 (appointment of independent valuation expert); 31 October 2011 (Award).