Author: Lin Jian

Abstract: In the context of Investor-State dispute settlement reform, as the systematic problems of arbitration are discussed and critiqued, mediation has gained more attention as an alternative method of solving Investor-State disputes. Mediation mechanism is perceived as cost-effective, efficient, flexible, and interest-based. Promoting mediation thus has important implications and valueadded significance in ISDS reform. However, there is still something essential and critical to improve. The mediation-related provisions in international investment agreements are broad and general, which may attenuate the effective use of mediation as an alternative to arbitration. Additionally, existing mediation rules by institutions are insufficient and certain core issues should also be carefully addressed in the ongoing mediation framework of International Centre for Settlement of Investment Disputes. Capacity building and assistance offered by institutions are proceeding, which may be greatly beneficial for the culture and environment of mediation in ISDS. Furthermore, the government’s capacity should also be to focus more on mediation by considering or reconsidering governance structures potentially able to overcome obstacles that states face during mediation.

Keywords: Investor-State mediation, ISDS reform, Mediation rules, Government structure