Although the present system for resolving investment disputes between states and foreign investors has been around for about five decades, the most significant changes to it have occurred in just the past two. Important changes were forced upon the system when developed countries first were faced with actual prospects of appearing as respondents in investor-state arbitration (ISA), starting with the North American Free Trade Agreement (NAFTA). Further provisions have been introduced in later, new-generation, treaties, based on lessons learned and reactions from the respective constituencies. As the issue of the continuing development of the system remains relevant to all countries, there is the need for a mechanism that ensures its balanced evolution for the benefit of all its users, which would not be dependent on the reactionary steps of only segments of the user community at any given time.
