Is the WTO dispute settlement system (DSS) is a suitable model for investor-state disputes arising under European Union Free Trade Agreements (EU FTAs)? Although previous attempts to replicate the system have failed at the multilateral level, the DSS is highly suitable to the specific nature of the EU. First, the WTO has helped create an integrative system, involving all stakeholders, i.e. disputants, States, and the organization itself. Second, a close analysis of the DSS shows that it is strongly focused on economic cooperation and not merely on litigation. Finally, unlike investment arbitration, the DSS has seemingly preserved the rule of law by allowing appeals. In this respect, the Appellate Body has gradually developed into a ‘rebellious’ judiciary, immune from political considerations. Transferring these key institutional features to the investment sphere would not only constitute structural improvements to the current system but also provide the EU with an instrument of global governance.
Global Trade and Customs Journal