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investor-state disputes | ISDS

Investor-state dispute settlement (ISDS) refers to a way of handling conflicts under international investment agreements whereby companies from one party are allowed to sue the government of another party. This means they can file a complaint and seek compensation for damages. Many BITs and investment chapters of FTAs allow for this if the investor’s expectation of a profit has been negatively affected by some action that the host government took, such as changing a policy. The dispute is normally handled not in a public court but through a private abritration panel. The usual venues where these proceedings take place are the International Centre for Settlement of Investment Disputes (World Bank), the International Chamber of Commerce, the United Nations Commission on International Trade Law or the International Court of Justice.

ISDS is a hot topic right now because it is being challenged very strongly by concerned citizens in the context of the EU-US TTIP negotiations, the TransPacific Partnership talks and the CETA deal between Canada and the EU.

Carlyle vs. Morocco: Here are the Kingdom’s arguments to ICSID
26-Feb-2020 EN24
For the Kingdom, Carlyle did not justify the existence of investments in Morocco. The American group invokes the Morocco-United States free trade agreement while the contracts with Samir concern entities based in the Cayman Islands.
Naftogaz seeks nearly $8 bln for assets expropriated by Russia in Crimea
24-Feb-2020 New Europe
Ukraine’s joint stock oil and gas company Naftogaz said the group seeks nearly $8 billion of compensation for its assets expropriated by Russia in Crimea.
Exclusive: Chinese consortium Ecuagoldmining opens dispute with Ecuador over halted mine
21-Feb-2020 Reuters
Chinese mining consortium Ecuagoldmining has initiated a dispute with Ecuador’s government over a gold mining project that has been halted by objections from community activists.
New arbitration between Renco Group and Peru at the PCA
18-Feb-2020 Ciar Global
The arbitration between the US mining company Renco Group and Peru in relation to the metallurgical deposit in La Oroya was reopened, at the request of the mining company.
Court reinstates order for Russia to pay $50 bln over Yukos
18-Feb-2020 New York Times
A Dutch appeals court reinstated an international arbitration panel’s order that it should pay $50 billion compensation to shareholders in former oil company Yukos.
ExxonMobil, Canada enter landmark settlement in NAFTA arbitration
13-Feb-2020 Dallas Business Journal
As a long-running dispute between Exxon Mobil Corp. and the government of Canada reached a multimillion-dollar settlement, lawyers for ExxonMobil announced.
Odebrecht takes Peru to arbitration over failed gas pipeline investment
6-Feb-2020 Reuters
Brazil construction company Odebrecht SA has taken Peru to arbitration over a failed $2 billion investment in a gas pipeline.
Uber ready to take dispute with Colombia to international arbitration: regional manager
4-Feb-2020 Reuters
The ride-hailing firm said its initial calculations suggest damages from suspending its service in Colombia will exceed $250 million.
ICSID approves Pakistan’s review plea against $6bn Reko Diq fine
31-Jan-2020 Geo TV
The World Bank’s International Center for Settlement of Investment Disputes has approved Pakistan’s petition for a review in the Reko Diq case in which the country was slapped with a $6 billion fine.
Letter from Africa CSOs and trade unions to African delegates at the UNCITRAL round
31-Jan-2020
We civil society organizations and trade unions from the African continent express our concerns about the proposal presented by the European Union to establish a multilateral investment court and support further reaching reforms of ISDS.
Pakistan waives off over $1.26mn duty on Turkish company Karkey
30-Jan-2020 Business Recorder
Pakistan approved waiving off all port dues/charges amounting to Rs194,951,059 on 31-1-2020 or till the vessels leave the port accruing against Karkey.
CETA: Rights for Canadian multinationals
28-Jan-2020 SOMO
CETA strengthens the legal position of North American companies in the EU and exposes European governments and taxpayers to potential claims.
ISDS reform: Designing permanent institutions at Working Group III
27-Jan-2020 IELP
The UNCITRAL Working Group III turned squarely to designing permanent institutions: a standing appellate mechanism and a multilateral investment court (MIC).
India inks first investment treaty with Brazil post-approval of new templates in 2015
27-Jan-2020 Deccan Herald
India inked an Investment Cooperation and Facilitation Treaty with Brazil – the first one after Prime Minister Narendra Modi’s Government in December 2015 approved a new template for such bilateral pacts.
Oil major settles huge capital gains tax bill to Vietnam after Finance Uncovered investigation
27-Jan-2020 Finance Uncovered
When Vietnam signalled it would claim the tax due, oil giant ConocoPhillips issued a pre-emptive legal strike using an arbitration process under the UK-Vietnam bilateral investment treaty.
The US drops ISDS
27-Jan-2020 The Globalist
The US government used to be the chief proponent of strong investor protection clauses in international trade deals. No longer. What happened?
How a trade deal with the US could destroy the UK’s climate change goals
24-Jan-2020 NewStatesman
Boris Johnson’s plan to diverge from EU rules threatens crucial environmental regulations.
Vattenfall procedure has cost almost 20 million euros
22-Jan-2020 WirtschaftsWoche
The energy company Vattenfall is demanding compensation from the Federal Republic of Germany. The costs for the arbitration proceedings could exceed 20 million euros this year.
The BIT footprints of emerging market economies in Africa: What do they portend for ISDS?
20-Jan-2020 Kluwer Arbitration Blog
Despite debates about crisis in investment treaty arbitration, most emerging market economies are concluding BITs that provide for ISDS and emerging market multinational companies appear to welcome ISDS.
Third miner declares dispute with Tanzania government
20-Jan-2020 The Citizen
The dispute is related to Canada-based company Montero Mining’s investment in the Wigu Hill rare earth element project.