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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.

Venezuela ratifies new bilateral investment treaty with China
29-Nov-2024 Herbert Smith Freehills
This treaty marks a significant step in Venezuela’s recent trend of executing BITs, particularly following its withdrawal from the ICSID Convention in 2012.
Panama agrees $26m payment to settle dispute with US miner
28-Nov-2024 Mining.com
Panama has agreed to pay $26 million to settle a dispute with Dominion Mineral Corp. after losing an arbitration award in 2020 over the US mining company’s copper-gold exploration licences.
Colombia to renegotiate arbitration issues of FTAs with the US and UE
25-Nov-2024 Prensa Latina
Colombia’s President said that Colombia will try to renegotiate the Free Trade Agreements with the European Union and the United States, concerning arbitration prerogatives based on national law.
A bilateral investment treaty with a ‘bit’ of change
22-Nov-2024 The Hindu
Despite some departures, the India-UAE bilateral investment treaty establishes a continuity of India’s investment treaty practice.
ICSID takes cognizance of Turkish firm’s claim against Pakistan
22-Nov-2024 The News International
ICSID Tribunal decides to proceed with adjudication on quantum of amounts owed to Bayindir by Pakistan.
British Virgin Islands court grants Chinese firm right to seize Nigerian $25m assets
21-Nov-2024 Business Day
The ruling marks the latest in a string of losses Nigeria has suffered in foreign jurisdictions over the past years.
Montero agrees to US$27 million settlement from Tanzania
21-Nov-2024 Montero Mining
Montero has agreed to a US$27,000,000 settlement amount to end its dispute with the United Republic of Tanzania
FinMin not keen on inclusion of BIT in free trade pacts: Sources
15-Nov-2024 The Hindu BusinessLine
Investment chapters in India FTAs may be limited to investment promotion, facilitation.
Campaigners call for Cop29 to commit to ending secretive corporate courts
15-Nov-2024 Morning Star
Investor-state dispute settlement (ISDS) courts are a legal mechanism that allow corporations to sue governments for decisions which they claim impact their profits — including environmental protections.
Vedanta parent moves Permanent Court of Arbitration against Indian govt
15-Nov-2024 Mint
UK-based Vedanta Resources Ltd raising a dispute against the government of India brings the challenges of investor-state arbitration into limelight.
Telefonica awarded $380 million from Colombian government in arbitration, company says
15-Nov-2024 WTVB
Spanish telecoms company Telefonica said that the World Bank’s International Centre for Settlement of Investment Disputes had ordered the Colombian government to pay it $380 million as part of an arbitration process.
Disputed grounds: Gold mining, resistance and investment arbitration in Türkiye
15-Nov-2024 SOMO
Large-scale mining projects highlight complex tensions between states, foreign investors, and local communities, leading to environmental and social risks for communities.
Nigeria launches review of bilateral investment treaties
15-Nov-2024 African Law & Business
The state’s trade policies will be updated over the coming months by a nine-member committee.
Kenya terminates Bilateral Investment Treaty with the Netherlands
13-Nov-2024 SOMO
The government of Kenya has officially terminated its bilateral investment treaty (BIT) with the Netherlands, marking a significant win for economic justice and environmental protection.
International investment law and ISDS: Overcoming legal barriers to effective climate action under the UNFCCC and the Paris Agreement
12-Nov-2024 CIEL
The urgent need to address climate change is hindered by legal barriers within international investment law, particularly through Investor-State Dispute Settlement (ISDS) mechanisms.
Emmerson enters formal investment dispute with Moroccan government
7-Nov-2024 Morning Star
Emmerson PLC on Friday said it has entered into a formal investment dispute with the Moroccan government, with the intention to escalate to arbitration if discussions are unsuccessful.
Honduras against the corporate Goliath
7-Nov-2024 TNI
An impoverished country resisting foreign investors’ claims.
Second instalment of US$25 million received from Tanzania
29-Oct-2024 Indiana Resources
Indiana Resources Limited (ASX: IDA) is pleased to confirm that US$25million in funds have been received by the Claimants’ legal representatives from the United Republic of Tanzania as the second instalment of the US$90 million Settlement
Sarama Resources secures funding for Burkina Faso arbitration claim
26-Oct-2024 Stock Titan
Sarama Resources has secured a US$4.4 million non-recourse loan facility from Locke Capital II to fund international arbitration proceedings against the Government of Burkina Faso
Kenya’s energy goals could be jeopardised by foreign treaty, say experts
23-Oct-2024 The Standard
Critics argue that the ECT, designed to protect foreign investments, contains vague provisions that allow multinational corporations to sue governments for lost profits due to policy changes.