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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.

Risks for Mexico in the renegotiation of its FTA with the European Union
11-Aug-2021 TNI
To end neoliberalism and defend energy resources, Mexico must step up and avoid at all costs the inclusion of supranational arbitration mechanisms in a renegotiated FTA with the European Union.
South’s concerns over ISDS reform process need to be addressed
10-Aug-2021 Third World Network
The broad mandate given by UNCITRAL focuses on a limited set of procedural issues that fails to address the substantive concerns over the crisis of legitimacy confronting the international investment regime, and ISDS more specifically.
The Irish Spanish Solar sues Spain in the ICSID for the cut in premiums to renewables
9-Aug-2021 Market Research Telecast
Spanish Solar demands compensation from the Spanish Government for having cut the premiums for the use of energy once the investments have been made.
Deep-sea salvage firm uses NAFTA to fight Mexican environmental rules
9-Aug-2021 The Maritime Executive
A lawsuit filed against the Mexican government for denying a permit for seabed mining has put a spotlight on the lack of international rules for such practices.
Protecting human and environmental rights in international investment agreements
9-Aug-2021 East Asia Forum
Human rights experts are particularly concerned about the asymmetric nature of the system and a lack of investors’ human rights obligations. Together with high ISDS costs and arbitral awards, they undermine states’ ability to realise economic, social, cultural and environmental rights.
XL pipeline absurd $15 billion NAFTA ISDS claim
7-Aug-2021 Public Citizen
TC Energy expects to get 15 times more money, coming from taxpayers’ pockets, than the asset losses it experienced from the revocation of a permit, that was already denied twice.
How ‘blood mineral’ traders in Rwanda are helping fund Congo rebels – and undermining global supply chains
6-Aug-2021 The Globe and Mail
New evidence from a UN report and a high-profile investor arbitration case is casting a spotlight on Rwanda’s role in sophisticated smuggling networks that extract gold and coltan from Congolese conflict zones and funnel the strategically important minerals illicitly into global supply chains.
India to scrap retrospective tax law in olive branch to global firms
6-Aug-2021 Reuters
India proposed scrapping a controversial law that taxed companies retrospectively, a move that could potentially settle its multi-billion-dollar tax cases with Cairn Energy and Vodafone.
Pakistan to terminate 23 bilateral investment treaties
5-Aug-2021 The Express Tribune
Decision aimed at avoiding international arbitration with foreign firms .
Vicat takes dispute with Egyptian state to international arbitration
4-Aug-2021 Global Cement
France-based Vicat raised a case against the Egyptian government with the International Centre for Settlement of Investment Disputes in late June 2021. It concerns its cement production business.
Experts seek AfCFTA dispute resolution mechanism for non-state parties
3-Aug-2021 The Guardian
Ahead of the African Continental Free Trade Agreement (AfCFTA) implementation in Nigeria, the Nigerian Institute of Chartered Arbitrators and other stakeholders are seeking dispute resolution mechanisms that will address concerns of non-state entities.
Corporate courts vs the environment
3-Aug-2021 Al Jazeera
Corporate courts were invented to protect the West’s control of the world against decolonisation. They are now undermining attempts to halt climate change.
Ex-Yukos unit wins new $5 billion court judgement against Russia
30-Jul-2021 Bloomberg
The Permanent Court of Arbitration ruled that Russia illegally expropriated loans provided by Yukos Capital Sarl to its former parent company.
White farmer enlists US federal court in enforcing US$277m arbitral award against Zimbabwe
28-Jul-2021 Bulawayo
Bernhard von Pezold and his family have enlisted the help of a US federal court in Washington DC in enforcing a US$277 million arbitral award against Zimbabwe.
Ancient Romanian gold mine given UNESCO protection
28-Jul-2021 Balkan Insight
The derailment of the plans led Canadian mining company Gabriel Resources to sue the Romanian government for $5.7 billion before the Washington-based ICSID.
Indiana Resources : Compensation claim of AU$127m lodged against Tanzania
27-Jul-2021 Market Screener
Indiana Resources files a memorial on the arbitration with Tanzania over the expropriation of the Ntaka Hill Nickel Project, whereby it claims the amount of AU$127 million, including interest which continues to accrue.
One step forward, two steps back in the struggle against anti-democratic corporate trade rules
26-Jul-2021 Inequality.org
Pakistan is the latest country to reject the system that allows private investors to sue governments in international tribunals. But Ecuador is back-tracking and the lawsuits continue to proliferate.
Romania mining town Rosia Montana eyes UNESCO restart
23-Jul-2021 France 24
Meanwhile, Gabriel Resources has taken Romania before the World Bank’s International Centre for Settlement of Investment Disputes, seeking $4.4 billion (3.7 billion euros) in damages.
New Ecuadorian government teams up with powerful international lobbies to rejoin investment treaties prohibited by the constitution
15-Jul-2021 Institute for New Economic Thinking
Investor-state dispute settlement (ISDS) allow foreign capitalists to run roughshod over the rights of Ecuadorians.
Imran okays new bilateral investment treaty template
13-Jul-2021 Dawn
Pakistan Prime Minister has approved the new Bilateral Investment Treaty template whereby any dispute will now be remedied through local arbitration.