A Study On The Challenge Of Arbitrators In International Investment Arbitration

International Investment Arbitration(IIA),refers to the arbitration process dealing with the Investor-State Investment Disputes.Different from International Commercial Arbitration,which means arbitration between private entities and/or natural persons,IIA has to consider the provisions of international investment laws,as well as the policy and interests of relevant states.Arbitrator is the key element for efficient operation of an arbitration,and thus all arbitration rules will set forth requirements for arbitrators’ qualification.While for arbitrators who fail to meet such requirements,the mechanism of arbitrator challenge or arbitrator disqualification will take its function.Thus,an efficient and fair challenge mechanism is essential to the fairness of IIA.With the development of international investment under the framework of ICSID,IIA cases are increasing,as well as challenges of arbitrators in these cases.Arguments and doubts are raising in terms of the independence and impartiality of IIA arbitrators,which in deed reveals the risk of legitimacy of IIA.In this regard,I will analyze through this dissertation,about the challenge mechanism of IIA arbitrators and its deficiency,and come up with my suggestions for its improvements.In the first Chapter,I will discuss the unique characteristics and value of IIA and the importance of arbitrators in IIA and their tasks.With the development of international investment,the system no longer has to provide extra protection over investors,but to sacrifice the interests of states.Instead,it should now pay attention to the balance between investor protection and the public interest of a state.In light of this new value,the challenge mechanism should also serve this purpose.I will introduce three frequently-revoked arbitration rules for international investment disputes in this Chapter as well,namely ICSID rules,UNCITRAL rules and ICC rules.In the second Chapter,I will turn to analyze the challenge mechanism under each set of rules.ICSID rules put much emphasis on the “independence” of an arbitrator while neglect the requirement of “impartiality”,which is quite different from other rules.Meanwhile,three set of arbitrator challenge mechanisms also show difference in terms of the standard of challenge and challenge procedures.In the third Chapter,I will focus on the mismatch between the new value and requirements of IIA and the problematic arbitrator challenge mechanisms of IIA.The independence and impartiality of arbitrators are usually impaired by the deficiency of arbitrator appointment mechanism,the lack of standard for independence and impartiality,and the ambiguity of the disclosure obligation of arbitrators.While the current challenge mechanisms cannot help with the solution of such problems.In the final Chapter of the this dissertation,I will raise some suggestions for the improvement of current challenge mechanisms,which include the clarification of the definition and standard of independence and impartiality,the establishment of deciding authority for challenge and detailed disclosure obligations.