The Draft Code of Conduct for Adjudicators in Investor–State Dispute Settlement: A Low-hanging Fruit in the ISDS Reform Process

Extract

The Draft Code of Conduct for Adjudicators in Investor–State Dispute Settlement (ISDS) is one of the most promising reform proposals presently discussed in Working Group III of the United Nations Commission on International Trade Law (UNCITRAL).¹ In a short period of time, the draft has already gained substantial interest and support among stakeholders, and adoption is likely in 2022.² In this article, I first put the Code in the larger context of the ISDS reform process, then explain its general content and highlight some of the main issues and related policy choices. I conclude with comments and suggest some ways forward.

1. THE CODE IN CONTEXT

ISDS is undergoing a profound process of reform, catalyzed by a complex and multifaced backlash to perceived anomalies in ISDS procedure, including how adjudicators are appointed, a perceived pro-investor imbalance in the system as well as general concerns on the correctness and consistency of ISDS decisions.³