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When it comes to international investment arbitration, the International Centre for Settlement of Investment Disputes (ICSID) is one of the most recognized institutions worldwide. Its rules on mediation and expedited arbitration have been gaining popularity lately for being quick and cost-effective mechanisms to resolve disputes. However, not everyone is aware of how they work and when they can be used. In this blog post, we will provide you with a comprehensive guide to understand ICSID rules on mediation and expedited arbitration. To learn more about ICSID and the world bank, please visit The International Center for Settlement and Investment Disputes: Overview – Transnational Matters
ICSID MEDIATION
ICSID rules on mediation gives a consensual, non-binding, and confidential process aimed at assisting parties in reaching an amicable settlement of their investment dispute. These rules offer mediation services through a panel of mediators, who are highly qualified and experienced in international investment disputes. Mediation generally takes place in two stages, the first being a preliminary meeting between the mediator and parties, and the second being face-to-face negotiations between the parties with the mediator’s assistance. Once there is a settlement, then it becomes binding on the parties.
EXPEDITED ARBITRATION
ICSID rules on expedited arbitration gives a fast-track arbitration process intended to settle disputes quickly and efficiently. Expedited arbitration usually takes less than six months from the date of registration of the request for arbitration. It is an opt-in process, meaning that both parties must agree to it. The proceedings are less formal than regular arbitration proceedings, and the tribunal must issue a final award within 100 days from the date on which the tribunal is constituted. Expedited arbitration rules also set out special procedures for document production, witness evidence, and hearing.
Advantages of mediation and expedited arbitration:
Advantages of mediation and expedited arbitration: Mediation and expedited arbitration have become increasingly popular in recent years due to the advantages they offer to parties in international investment disputes. Mediation provides a cost-effective alternative to litigation and a quicker resolution of disputes, which can save parties time and resources. Expedited arbitration, on the other hand, is ideal for parties who wish to resolve their disputes quickly and efficiently, particularly where the dispute involves a straightforward issue of law or fact.
Limitations of mediation and expedited arbitration
Mediation and expedited arbitration are not suitable for all investment disputes. Where parties have fundamental differences in their positions on the key issues or where there is a need for a detailed examination of evidence or interpretation of the law, the standard arbitration process may be more appropriate. Also, while mediation is a confidential process, expedited arbitration is not, meaning that the award is public, unless the parties agree otherwise. To learn more about these rules, please visit Expedited Arbitration – ICSID Convention Arbitration (2022 Rules) | ICSID (worldbank.org) and Mediation | ICSID (worldbank.org)
CONCLUSION
In conclusion, ICSID rules on mediation and expedited arbitration provide parties in international investment disputes with a range of options for resolving their disputes outside of court. Mediation and expedited arbitration offer distinct advantages, such as cost and time savings, and are excellent alternatives to standard arbitration. However, it is essential to weigh the advantages and disadvantages of each process before choosing the best option for a particular investment dispute.
