Research and Survey on the Dispute Prevention and Mitigation System in APEC Economies

A number of economies in the world have established mechanisms which are designed to address grievances and complaints of foreign investors at an early stage to prevent and mitigate the risk of escalation into formal investment disputes. This report analyzes such mechanisms created by APEC member economies that serve as one-stop contact points for receiving grievances and complaints directly from foreign investors and are empowered to initiate actions to resolve such grievances or otherwise assist in their resolution. The analysis of the legal frameworks establishing those mechanisms is complemented by interviews with officials managing some of those mechanisms, as well as the business community as their potential users. Based on this analysis, the report proposes a “checklist” of issues that economies may wish to consider when designing or improving a similar one-stop contact point and/or coordination mechanism.

Well-designed dispute prevention and mitigation mechanisms can offer real benefits to economies and investors, including faster resolution, lower legal costs and risks, smoother navigation of government processes, and a more stable business environment.