Settlement of disputes in Asian free trade agreements: An empirical study of the dispute settlement mechanisms in Japan’s BITs and EPAs

Since 2002 Japan has accelerated its policy of concluding economic partnership agreements (EPAs), as well as bilateral investment treaties (BITs), noting the importance of the enhancement of bilateral or regional economic relations through those treaties. Most of them provide sophisticated mechanisms for the settlement of both investor-state disputes and disputes between/among state parties, which are expected to play essential roles in guaranteeing compulsory procedures for the settlement of disputes with legally binding effect and in ensuring the implementation of the rules under the treaty. For the purposes of implementation of the rules, joint committees and other sub-committees (established in accordance with the BITs and the EPAs concluded since 2002) are also important as a forum for regular consultation and communication between/among state parties. It should also be noted that some EPAs have entered into force, with provisions on settlement of investor-state disputes pending until the final decision on the respective multilateral mechanism.