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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.

Colombia and the US sign an agreement to balance investments in the FTA
17-Jan-2025 América Economía
The new interpretative note on the investment chapter of the FTA seeks to avoid legal abuses and protect the sovereignty of both countries without affecting incentives for foreign investment.
US-Colombia FTA: Interpretations of the investment chapter (Jan 2025)
17-Jan-2025 USTR
Senators demand US trade chief Tai halt late talks on investor protections
16-Jan-2025 Reuters
A bipartisan group of US senators called on US Trade Representative to stop negotiations with Mexico, Canada and Colombia that they say would weaken investor protections in some US free trade deals during the Biden administration’s final days.
New AFTINET explainer: why ISDS is a threat to climate action
15-Jan-2025 AFTINET
This explainer sheds light on how Clive Palmer is using Investor-State Dispute Settlement provisions in trade agreements to claim up to $420 billion from the Australian government.
AB InBev takes on Peru over tax bill
14-Jan-2025 CDR
The global beer brewing giant has filed an ICSID challenge to the Peruvian tax authority’s attempts to recover an outstanding tax bill and its refusal to allow refunds.
Tunisia to face sand mining claim
9-Jan-2025 CDR
Minerali Industriali is taking action under the Italy-Tunisia bilateral investment treaty for alleged mistreatment related to its sand mining and processing business.
Colombia is defending its sovereignty from the power of global corporations
6-Jan-2025 Al Jazeera
Trade deals can allow international corporations to trample over the rights of governments in the Global South. That is the message from the Colombian government, which describes the effect of such deals as a “bloodbath” for their national sovereignty.
Nations are exiting a secretive system that protects corporations. One country’s story shows how hard that can be
3-Jan-2025 Inside Climate News
Bolivia was the first nation to begin leaving a legal system that allows foreign companies to sue governments behind closed doors. Now, other countries are following.
Emmerson secures litigation funding for Morocco claim
3-Jan-2025 CDR
The company has secured up to USD 11 million in funding against the North African state.
S. Korea, Bahrain sign bilateral investment protection treaty
2-Jan-2025 Yonhap
South Korea and Bahrain have signed a bilateral investment treaty on cementing the legal grounds for mutual investment and economic cooperation, Seoul’s foreign ministry said.
S Alam threatens int’l legal action against Bangladesh interim govt
2-Jan-2025 Dhaka Tribune
Mohammed Saiful Alam, founding chairman and managing director of the Bangladeshi industrial conglomerate S Alam Group, has initiated legal proceedings as a Singaporean citizen to seek compensation for alleged financial losses.
Zenith Energy wins key decision in ICSID arbitration
2-Jan-2025 Investing.com
In a significant legal development, Zenith Energy Ltd. announced that the ICSID has rejected a request for bifurcation by the Republic of Tunisia in an ongoing arbitration case.
Enagás: ICSID agrees with Enagás in dispute with Peru over GSP and recognises compensation of €186 million
24-Dec-2024 The Corner
Favourable news for Enagás, although the amount is lower than initially claimed and represents an accounting loss.
Bilateral investment treaty and FTAs are two separate pacts; should continue to remain so: Sources
23-Dec-2024 The Economic Times
Demands of certain developed countries from India to negotiate ’investment protection’ elements under an FTA is inappropriate as negotiating the matter as part of a separate chapter under the trade pact could have larger and detrimental implications.
Democrats urge end to trade deal investor protections as USTR denies secret talks
20-Dec-2024 Reuters
A group of 37 Democratic lawmakers urged the US Trade Representative’s office to press ahead with efforts to weaken investment protections in US trade agreements.
GoP receives notice from Halmore power company regarding ‘forced’ negotiated settlement
20-Dec-2024 NewzShewz
The government of Prime Minister Shehbaz Sharif has received a formal notification regarding a claim from the owner of Halmore power company.
The Commission decides to refer the United Kingdom to the Court of Justice of the European Union for failure to terminate its Bilateral Investment Treaties (BITs) with six EU Member States
18-Dec-2024 European Commission
The European Commission decided to refer the United Kingdom to the Court of Justice of the European Union for failing to terminate the Bilateral Investment Treaties that it still has in force with Bulgaria, Czechia, Croatia, Lithuania, Poland and Slovenia.
Commission must stop Energy Charter Treaty hijacking EU climate policy
18-Dec-2024 Euractiv
The Energy Charter Treaty allow fossil fuel investors to sue EU member states before international arbitral tribunals to challenge climate mitigation measures. This legal mechanism is increasingly weaponized by the industry.
Sarama Resources submits request for arbitration against Burkina Faso
13-Dec-2024 Sarama
Formal commencement of international arbitration proceedings for significant damages claim.
How predatory energy developers harassed Hondurans
13-Dec-2024 Foreign Policy in Focus
Honduras’s coup-era government opened the floodgates for predatory energy projects. Now that Hondurans are fighting back, the companies are trying to take them to arbitration.