EXAMINATION OF THE DISPUTE RESOLUTION MECHANISMS IN INTERNATIONAL ECONOMIC LAW

Abstract

Disputes in international law are being resolved by formal tribunals, while less attention had been devoted to informal ways of settling disputes in International economic relations among nations. However, this trend poses new challenges and risks, including the risk of a loss of uniformity and consistency of jurisprudence, and a potential overlapping of jurisdiction which allows states and parties to make a forum shopping for the tribunal most likely to arrive at a favourable resolution for them. This paper, by adopting doctrinal research methodology, begins with a discussion of mechanisms for resolving dispute in international economic law and the need for a robust framework of effective international adjudication and then examines why compulsory international adjudication is widely accepted in international trade law. The paper compares the relevant dispute settlement mechanisms and offers reasons why legal remedies and international dispute resolution need to adopt the use of non-formal dispute settlement mechanisms such as arbitration and negotiation in international trade law. Lessons are drawn from the international economic law revolution, and recommendations are made for strengthening international dispute settlement mechanisms in the areas of international trade.