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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.


New Pacific trade deal carries few benefits for the UK
Given the breadth of the policy areas that CPTPP accession will impact upon, how can UK membership have been subject to so little public debate? The answer is that the structures via which trade deals are negotiated and ratified are opaque and undemocratic.
Almaden provides corporate update
Almaden delivered to Mexico written notice of its intention to submit a claim to arbitration against Mexico under the CPTPP.
Sign the petition to stop investors like Clive Palmer from suing our government for billions over climate change policies
Some international trade agreements allow foreign investors to sue the Australian government if a change in law or policy reduces their profits, even if the change protects public health or the environment.
Investor–state dispute settlement and fossil fuels: What role for a carveout?
The proposal of a carveout emerges as a targeted damage control measure to address the recognized and urgent problem that ISDS poses to climate action.
Ecuador’s "shock doctrine" referendum on ISDS
The Ecuadorian President is using the cover of internal conflict to bring investor-state dispute settlement back to Ecuador, in what a former Constitutional Court member calls a "democratic disaster."
Romania wins legal battle against a Canadian miner over failed plans to open a gold mine
The Romanian government has won a years long legal dispute with a Canadian mining company seeking damages over failed plans to open a gold and silver mine in the Eastern European country.
Klesch Group’s legal paradox
Oil Refiner Klesch sues EU, Germany and Denmark over windfall profit tax while making record profits due to Ukraine invasion.
EU countries to exit energy treaty over climate concerns, officials say
European Union countries agreed to jointly quit an international energy treaty over concerns that it undermines efforts to fight climate change, officials said.
Invested in whiteness: Zimbabwe, the von Pezold arbitration, and the question of race in international law
Using the 2015 arbitral award in von Pezold v. Zimbabwe as its starting point, this piece reflects on the relationship between racial capitalism and international law.
Trade deal could put corporate profits over people, say groups
A proposed Canada-Ecuador free trade agreement could put corporate interests above citizens’ rights, say several concerned organizations.
EU breaks deadlock on the ECT, announces exit
Today marks a significant turning point as the Belgian EU Presidency brokered a deal with the European Commission and member states on the withdrawal from the Energy Charter Treaty.
Honduras Denounces the ICSID Convention
On February 24, 2024, the World Bank received a written notice of denunciation of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (the ICSID Convention) from the Republic of Honduras.
How people power forced the UK to leave the Energy Charter Treaty
On 22 February 2024 the UK announced it will leave the climate-wrecking Energy Charter Treaty.
Billion-dollar exposure: Investor-state dispute settlement in Mozambique’s fossil fuel sector
Mozambique faces a substantial economic risk due to its exposure to investor-state dispute settlement (ISDS) claims by foreign investors in its coal, oil, and gas sectors. The investment protections in the country’s international investment agreements and contracts, combined with ISDS, expose Mozambique to multi-billion-dollar financial liabilities.
ISDS regime could choke climate action in emerging economies, experts say
The investor-state dispute settlement (ISDS) system could be putting climate action at risk in emerging and developing economies as investors in fossil fuel projects angle for compensation, experts say.
First Quantum Seeks $20 Billion From Panama in Free Trade Case
First Quantum Minerals Ltd. is seeking $20 billion from Panama in a free trade arbitration case after the Central American nation shut down the company’s flagship copper mine late last year.
UK Lawmakers Slam ‘Lack of Clarity’ on Major Trade Deal Benefits
British lawmakers said the benefits of the UK’s accession to a major trans-Pacific trading bloc are unclear
‘Litigation terrorism’: the obscure tool that corporations are using against green laws
Investor-State Dispute Settlements are legal, huge and often hush-hush – and fossil fuel firms and others are using them to hold the planet to ransom.
Kuwait’s Agility gets favourable verdict on $380m Iraq funds
The Kuwaiti company Agility gets another opportunity to reclaim its legacy investment in an Iraqi telecom firm. The charges brought by Agility relate to more than $380 million in diverted funds.
Tanzania’s attempt to strike out Indiana’s compensation fails to score
Indiana Resources is closer to recovering its historical sunk investment for the unlawful expropriation of the Ntaka Hill nickel sulphide project after the ICSID struck out most of Tanzania’s grounds for requesting the annulment of the award.