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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.

Nigeria eyes global energy charter for investments
7-Jul-2022 Daily Trust
Nigeria is targeting to be part of the International Energy Charter (IEC), a global community that will enable it to attract Foreign Direct Investments (FDI) to accelerate power sector development.
Croatia loses international arbitration against Hungary’s MOL over gas business
7-Jul-2022 Euractiv
Croatia has lost an international arbitration case launched by Hungarian oil and gas group MOL over Zagreb’s failure to fulfil obligations under an agreement about the gas business of the jointly owned Croatian oil company INA.
ITACO launches multi-billion dollar arbitration against Vietnam
5-Jul-2022 Business Wire
Tan Tao Investment & Industry Corporation launched a billion-dollar arbitration proceeding against Vietnam under the agreement between the United States and the Socialist Republic of Vietnam.
Six reasons NOT to ratify the EU-Mexico Global Agreement
5-Jul-2022 bilaterals.org
Statement of the Mexican, European and international civil society, 4 July 2022
‘Investor-State Dispute Settlement’ as a new avenue for climate change litigation
30-Jun-2022 LSE
Climate-related ISDS indicate a real risk that significant resources and energy may be diverted away from climate action, impacting the popularity of pro-climate policymaking among both policymakers and the public.
Energy treaty update fails to address climate crisis, activists say
27-Jun-2022 The Guardian
1994 agreement allows investors to sue governments for changes in energy policy that harm their profits.
Energy Charter Treaty modernisation text summary (Jun 2022)
27-Jun-2022 Energy Charter
Turkish firms move WB, seek $230m award against Pakistan
23-Jun-2022 The Express Tribune
Two Turkish waste management companies have filed a complaint in the International Centre for Settlement of Investment Disputes (ICSID) seeking a $230 million award against Pakistan
Young people go to European court to stop treaty that aids fossil fuel investors
21-Jun-2022 The Guardian
Five claimants aged 17-31 want their governments to exit the energy charter treaty, which compensates oil and gas firms.
The most worrisome threat to global climate action you’ve likely never heard of
14-Jun-2022 Sierra
How investor-friendly trade agreements might squelch government efforts to halt oil and gas expansion.
Big oil is suing countries to block climate action
9-Jun-2022 The Lever
Oil and gas investors are using investor-state dispute settlement to successfully argue that climate policies are cutting into their profits.
PH, Israel sign deal to strengthen economic ties
9-Jun-2022 CNN Philippines
The Philippines and Israel inked the investment promotion and protection agreement that includes investor-state dispute settlement.
New Trade Minister and Assistant Minister have mandate for progressive reform of Australia’s trade policy
7-Jun-2022 AFTINET
This policy commits Labor to oppose corporate rights to sue governments, stronger medicine and copyright monopolies, provisions for deregulation of public services, and the removal of labour market testing for temporary migrant workers.
From solar dream to legal nightmare
2-Jun-2022 TNI
How financial investors, law firms and arbitrators are profiting from the investment arbitration boom in Spain.
Social movement reflections on FTAs in the new Chilean constitution
26-May-2022 bilaterals.org
Interview with Chilean activist Lucía Sepúlveda Ruiz.
UK-wide protests over £11bn legal threat to climate goals
23-May-2022 Global Justice Now
UK government urged to exit controversial Energy Charter Treaty, dubbed ‘the fossil fuel industry’s secret weapon’.
Canada trade deal ruling could further erode Government’s majority
20-May-2022 The Irish Times
The Irish Government could come under further pressure in the autumn with a Supreme Court judgment on a legal challenge to the EU-Canada trade deal expected soon.
A protest is taking place in Salisbury city centre today
19-May-2022 Salisbury Journal
Protestors will be gathering to march to the Rockhopper Exploration headquarters. The company is suing the Italian government for £236 million due to its refusal to allow oil drilling off the Adriatic Coast.
The danger of corporate courts to green transition
19-May-2022 Brig Newspaper
Global Justice Stirling is holding a rally against corporate courts in front of Buchanan Galleries in Glasgow.
Canadian mining companies keep targeting developing countries in dispute settlements
19-May-2022 National Observer
Canadian mining companies continue to sue developing countries for environmental policies that affect their profitability and often win huge payouts from these poorer countries, a new report states.