In Memory of Guillermo Aguilar Álvarez
Karim A Youssef’s Contribution to “Arbitration Beyond Borders”
Confronting Stigma in International Arbitration
Stigma is a significant issue in international arbitration, and its impact can transcend the confines of the arbitration system. As Youssef points out, it is a dangerous phenomenon, and addressing it is critical, if not existential, for the future of international arbitration. It is an attack not only on the arbitration process itself but also on the very essence of arbitration.
Challenging Misconceptions and Promoting Fairness
In his chapter, Youssef aims to confront the notion of stigma in international arbitration, refuting it and confirming its failures. He argues that the fight against stigma is crucial to the success of investment treaty arbitration in promoting impartial and fair adjudication of disputes. By addressing this issue and seeking to unroot it at its very core, Youssef’s chapter offers valuable insights and analysis into how investment treaty arbitration can become a more effective means of dispute resolution.
The Future of Investment Treaty Arbitration
“Stigma is doomed to fail because it is deficient as a concept and is futile. Stigmatic arguments are simplistic and invariably inaccurate or wrong. Stigma fails because it is disengaged from reality and disconnected from any true understanding of global arbitration. Stigma and stigmatizers simply have no place in the age of global arbitration.”- (Youssef,2023)

Youssef, K. A. (2023). Against Stigma: How to Refute Negative Perception and Self-Reproach in Investment Treaty Arbitration and Fight Stigma in the Age of Global Arbitration. In Arbitration Beyond Borders. essay, Kluwer Law International B.V.
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FAQ about International Arbitration Stigma
What are the disadvantages of international arbitration?
The parties can also agree to maintain the confidentiality of the dispute, which is not typically possible in domestic litigation. However, critics often highlight certain drawbacks, such as the absence of an appellate mechanism, the extensive discretion granted to arbitrators compared to courts, and the inability to involve parties who have not consented to arbitration.
Why do you like international arbitration?
This is due to the belief that an international tribunal is likely to be more impartial, free from national biases, and better informed about international business practices than a typical national court.