The Evolution of Investment-State Dispute Resolution in NAFTA and CAFTA: Wild West to World Order

Abstract

This article discusses the evolution of international dispute resolution, principally the reforms to transparency provisions and the arbitral award review process over the last ten years. Part II lays a foundation by reviewing the historical background of investment disputes and their growing importance in the global economy. Part III then highlights reforms to the transparency provisions in CAFTA in the wake of NAFTA. Addressing avenues for post-award review, Part IV examines the means to review an award under CAFTA in light of the methods already implemented under NAFTA. Arbitral decisions are cited where applicable and illustrative. Additionally, Part IV discusses the advantages and disadvantages of establishing an appellate body and proposes one possible framework. Finally, Part V summarizes the observations made in the previous sections.