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.

Articles

The EESC opposes ISDS in TTIP and CETA and calls for an International Investment Court

29-May-2015 EESC The European Economic and Social Committee, in its opinion adopted on 27 May, opposes the inclusion of Investor-State Dispute Settlement (ISDS) provisions in the Transatlantic Trade and Investment Partnership (TTIP) or in the Comprehensive Economic Trade Agreement (CETA), as it believes such a system has the potential to derail both agreements.