Since 2015, the European Union has been working towards establishing a World Investment Court (WIC) for the resolution of Investor-State disputes. In light of being embroiled in 22 arbitration proceedings against prominent global investors, including Vodafone and Cairn Energy, India has welcomed the European Union’s proposal to establish a ‘World Investment Court’ (WIC). The WIC has been touted as an independent, accountable and effective dispute resolution body which would strive to resolve current and future Investor-State disputes, including the ones India is or could be involved in.
This Court would replace the existing Investor-State Dispute Settlement (ISDS) regime, which has been criticised for meting out inconsistent arbitral awards, on account of the varying provision of the ISDS in investment treaties. These varying provisions have resulted, in many cases, the deliverance of inconsistent and erroneous arbitral awards. These awards, coupled with the long drawn-out proceedings of the ISDS, have resulted in a great amount of confusion regarding current investment laws, as well as a significant increase in arbitration costs.
However, this proposal has been severely criticised by several organisations for being biased and ineffective, on the grounds that it would leave the people and the environment to the whims of rich investors. Organisations in India too, have criticised the centre’s move, stating that it is not in the country’s best interests and that it is inherently skewed towards the developed countries.
Read more at: https://www.euractiv.com/section/all/opinion/multilateral-investment-court-an-utterly-flawed-and-unjust-system/
This post has been authored by Aditi Vasani, a second year student at West Bengal National University of Juridical Sciences.
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