Definition, History and Basic Mechanism of TPF

This chapter sets a background for TPF and its impact on investment arbitration. To have more sophisticated discussions in the chapters that follow, a fundamental understanding of what TPF does is essential. There is one fact that the use of TPF is increasing. However, what constitutes TPF is not always understandable. Thus, this part analyzes and explores through doctrinal analysis the definition of TPF, the historical development of TPF, and different TPF models. With the fundamentals set out in this chapter, further analysis and discussions on each specific procedural and ethical issue will be possible. What the stages in the TPF process are, what the considerations of both sides in a TPF relationship are, and how this TPF process is positioned in the Investor-State Dispute Settlement (ISDS) regime are also explained here.