Policy Brief on International Investment Law Reform and Parallel Proceedings

1. Parallel proceedings in investor-state dispute settlement (ISDS) create legal uncertainty, increase costs, and undermine the legitimacy of the system. 

2. The decentralized nature of international investment law, with over 2,500 treaties, allows investors to pursue multiple claims in different forums. 

3. Key challenges include conflicting rulings, prolonged dispute resolution, and the risk of forum shopping by investors. 

4. Proposed reforms include treaty harmonization, a multilateral investment court, and stronger procedural rules to prevent duplicate claims. 

5. An incremental approach—starting with treaty harmonization and diplomatic engagement—can help establish a more predictable and fair dispute resolution system.