As the UNCITRAL Working Group III is deliberating on an appellate mechanism for investor-state dispute settlement (ISDS), this article analyzes the debate surrounding the necessity and feasibility of such an appellate mechanism. It highlights the political and practical issues in establishing such an appellate mechanism, drawing on its comparison with the WTO Appellate Body. Emphasizing the need to balance the interests of developed and developing countries, this article argues that the absence of a structured method in the existing proposals to evaluate equal representation and fairness in the institutional design for the appellate mechanism poses significant challenges. The article makes specific proposals to address such challenges as the financial burden on developing countries, the risk of procedural delays, and the requirement for impartial and diverse tribunal composition. These considerations underscore the critical need to balance party autonomy with centralized oversight and ensure that procedural reforms do not unintentionally disadvantage developing nations.
