With the increase in global trade, and cross-border investment over the last 20 years in particular, it has become critical for parties to develop a means of settling disputes and for lawyers to be able to advise them.  International arbitration has provided a reliable and effective means of ensuring disputes are dealt with under the rule of law; it is an accepted means for parties to settle commercial disputes, and the only effective means for dispute resolution in cross border disputes.  The alternative would require one party to submit to the jurisdiction of the courts of the other.  In practical terms, that would constrain most inward investment from the First World into the developing world.

This is where much of the criticism of ISDS is centred.

The following article was published in the latest edition of LawNews, the publication of the Auckland District Law Society Inc.

TPPA – LawNews

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