Abstract
Investment dispute settlement system based on investment arbitration and known as investor--state dispute settlement (ISDS) has been a subject of substantial criticism, particularly in the context of regional trade and investment negotiations. After the public consultation and inter-institutional discussions, the European Union decided in 2015 in the context of the Transatlantic Trade and Investment Partnership negotiations with the United States, to replace ISDS in its treaties by a new approach to investment dispute settlement known as investment court system (ICS).
According to the European Union the new dispute settlement mechanism is a necessary reaction to the public's lack of trust towards ISDS and subjects to democratic principles and public scrutiny. This article at first attempts to explain the transformation of EU's position.
It then focuses on three issues of ICS functioning which draw the most attention: impartiality and independency of arbitrators, predictability and consistency in decision-making and enforcement of awards.The overall evaluation of ICS and its positioning into broader efforts to reform international investment law are reached by analysing these issues.