Improving Investor-State Dispute Resolution in International Investment Agreements: The US Supreme Court Adds Fuel to Fire

Austin Ignatius PULLE, Singapore Management University


In BG Group v Argentina, the American Supreme Court upheld an arbitral award rendered by arbitrators in favor of an investor who had bypassed the applicable dispute resolution procedures in the bilateral investment treaty. Instead of applying the Vienna Convention on the Law of Treaties which was the applicable law, the Court upheld the use of American law rules of interpretation applicable to private commercial contracts. This decision refocuses attention of the defects of investor-state dispute resolution systems and the pro-investor bias of arbitrators.