ASEAN Further Enhances Its Dispute Settlement Mechanism

• Author: Edmund Sim
• Position: Appleton Luff
• Pages: 279-292

e Indonesian Journal of International & Comparative Law

ISSN: 2338-7602; E-ISSN: 2338-770X

http://www.ijil.org

© 2020 e Institute for Migrant Rights Press

ASEAN FURTHER ENHANCES ITS

DISPUTE SETTLEMENT MECHANISM

Edmund W. Sim

Appleton Luf

E-mail: sim@appletonlu.com

e ASEAN Economic Community (AEC) has been negatively impacted by the

relative lack of credibility of its dispute settlement system, the ASEAN Protocol

on Enhanced Dispute Settlement Mechanism (EDSM). Because of procedural

and structural deciencies and bureaucratic inertia, the EDSM has never been

used. is lack of an eective dispute resolution system undermines investor

condence in the AEC, as uncertainty persists about how ASEAN Member

States’ AEC commitments would be enforced. In 2019, ASEAN completed a fur-

ther “enhancement” of the EDSM. On their face, the 2019 revisions do indeed

“enhance” the EDSM by eliminating structural problems such as impractical

timelines and by bolstering previously underdeveloped systems such as appellate

procedures, creation of arbitration panels and rules of conduct for panelists. is

will help give the revised EDSM more credibility. Ultimately, however, whether

the updated EDSM will be viewed as more credible, thereby strengthening the

AEC, will depend on factors beyond its remit. Cultural and political factors in

ASEAN will determine to what extent the updated EDSM is used by the ASEAN

Member States. Moreover, the relative decline of alternative dispute forums, in

particular the WTO, may make the updated EDSM more attractive to ASEAN

Member States. Either way, the 2019 revisions in the EDSM are both welcome

and timely reinforcements to the legal and policy foundations of the AEC.

Keywords: Regionalism, Southeast Asia, Regional Economic Law, Regional Trading

Blocs.