Journal of Contemporary Issues in Business and Government

Abstract

The present study finds that establishing a permanent appeals mechanism is essential to resolve
the current legitimacy crisis regarding investor-State dispute settlement. Currently, States have
proposed two basic models of investment arbitration appellate reform to Working Group III of
the UN Commission on International Trade Law, namely the formation of a Multilateral
Investment Court (MIC) and a Permanent Multilateral Appellate Process(PMAP). The Latter is
more legitimate and feasible than the MIC. The Appellate Mechanism's (AM) review scope
should include legal and procedural errors to guarantee that the AM's error rectification function
is completely accomplished. To improve the efficiency of arbitration, factual inaccuracies should
be confined to apparent errors. Although stare decisis is not yet a general concept in international arbitration, PMAP can employ the de facto stare decisis evolved in WTO judicial practice to promote coherence and predictability of verdicts.