Universal, Regional, National – Ways of the Development of Private International Law in 21st Century



After decades of success, investment arbitration has become an extremely controversial topic, riven by multiple allegations and concerns among the experts and various interest groups. In this contribution, we aim to examine the most relevant and severe of these issues, including regulatory chill. Regulatory chill is a purported phenomenon that claims that investment arbitration favors foreign investors, and thus intimidates host states into refusing to implement policies that would contradict with the interests of foreign investors. We not only examine these problems, but also attempt to suggest some potential remedies for alleviating these issues.

Klíčová slova

ISDS; Regulatory Chill; Chilling Effect; Investment Arbitration.


Berge, T. L., Berger, A. Does investor-state dispute settlement lead to regulatory chill? Global evidence from environmental regulation. 2019, 41 p.

Bilateral Investment Treaties 1959–1999 [online]. UNCTAD. Published in 2000, 142 p. [cit. 3. 9. 2019]. https://unctad.org/en/Docs/poiteiiad2.en.pdf

De Korte, J., Wilts, G. Court allows Russia’s unclean hands argument against former Yukos shareholders (Court of Appeal in The Hague) [online]. Vosdk.nl. Published on 3 October 2018, 4 p. [cit. 5. 9. 2019]. https://www.vosdk.nl/assets/files/assets/uploads/Court_allows_Russias_unclean_hands_argument_against_former_Yukos_shareholders___1.pdf

European Federation for Investment Law and Arbitration A response to the criticism against ISDS [online]. EFILA. Published in 2015, 42 p. [cit. 5. 9. 2019]. https://efila.org/wp-content/uploads/2015/05/EFILA_in_response_to_the-criticism_of_ISDS_final_draft.pdf

Galagan, D., Zivkovic, P. The Challenge of the Yukos Award: an Award Written by Someone Else – a Violation of the Tribunal’s Mandate [online]. Kluwer Arbitration Blog. Published in 2015 [cit. 8. 9. 2019]. http://arbitrationblog.kluwerarbitration.com/2015/02/27/the-challenge-of-the-yukos-award-an-award-written-by-someone-else-a-violation-of-the-tribunals-mandate/

IBA Arbitration Subcommittee. Consistency, efficiency and transparency in investment treaty arbitration. Published in November 2018, 66 p.

Lester, S. The ISDS controversy: How we got here and where next [online]. ICTSD. Published in 2016 [cit. 3. 9. 2019]. http://www.ictsd.org/opinion/the-isds-controversy-how-we-got-here-and-where-next

Mohamadieh, K. The Future of Investor-State Dispute Settlement Deliberated at UNCITRAL: Unveiling a Dichotomy between Reforming and Consolidating the Current Regime. Investment Policy Brief. 2019, No. 16, pp. 1–14.

Neumayer, E. Do countries fail to raise environmental standards? An evaluation of policy options addressing ‘regulatory chill’. International Journal of Sustainable Development. 2001, Vol. 4, No. 3, pp. 231–244. https://doi.org/10.1504/IJSD.2001.004446

Nolan, M. D. Challenges to the Credibility of the Investor-State Arbitration System. American University Business Law Review. 2016, Vol. 5, No. 3, pp. 429–445.

Investment Policy Hub [online]. UNCTAD [cit. 3. 9. 2019]. https://investmentpolicy.unctad.org/investment-dispute-settlement

Parra, A. R. The History of ICSID. Oxford: Oxford University Press, 2012, 488 p. https://doi.org/10.1093/law/9780199660568.001.0001

Reform Options for ISDS [online]. UNCITRAL, 11 p. [cit. 5. 9. 2019]. https://uncitral.un.org/sites/uncitral.un.org/files/media-documents/uncitral/en/uncitral_recs_and_justification_final.pdf

Shekhar, S. ‘Regulatory Chill’: Taking Right to Regulate for A Spin. Working paper [online]. Centre for WTO Studies. Published in 2016, 35 p. [cit. 3. 9. 2019]. http://wtocentre.iift.ac.in/workingpaper/’REGULATORY%20CHILL%E2%80%99%20TAKING%20RIGHT%20TO%20REGULATE%20FOR%20A%20SPIN%20(September%202016).pdf

Tienhaara, K. Regulatory chill and the threat of arbitration: a view from political science. In: Brown, C., Miles, K. (eds.). Evolution in Investment Treaty Law and Arbitration. Cambridge: Cambridge University Press, 2011, 746 p.

Tienhaara, K. Regulatory Chill in a Warming World: The Threat to Climate Policy Posed by Investor-State Dispute Settlement. Transnational Environmental Law. 2018, Vol. 7, No. 2, pp. 229–250. https://doi.org/10.1017/S2047102517000309

Torbágyi P. Magyar Kivándorlás Latin-Amerikába az Első Világháború Előtt. Szeged, 2009, 261 p.

Touzet, J., de Vaublanc, M. V. The Investor-State Dispute Settlement System: The Road To Overcoming Criticism [online]. Kluwer Arbitration Blog. Published on 6 August 2018 [cit. 12. 9. 2019]. http://arbitrationblog.kluwerarbitration.com/2018/08/06/the-investor-state-dispute-settlement-system-the-road-to-overcoming-criticism/

Vandevelde, K. J. A Brief History of International Investment Agreements. U.C.-Davis Journal of International Law & Policy. 2005, Vol. 12, No. 1, pp. 157–194.

Report of Working Group III (Investor-State Dispute Settlement Reform) [online]. United Nations Commission on International Trade Law. Published in 2018, 13 p. [cit. 11. 9. 2019]. https://undocs.org/en/A/CN.9/930/Rev.1