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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.

South Korean Prime Minister considers abolishing ISDS
22-Jul-2019 AFTINET
Media reports from South Korea have suggested that South Korean Prime Minister Mr. Lee Nak-Yeon is considering abolishing ISDS from Korean Trade agreements.
Australian miner sues Egyptian government over collapse of billion-dollar deal
22-Jul-2019 The Age
Australian company planned was to mine tantulum, but seventeen years later, the company is suing the Egyptian government for potentially hundreds of millions of dollars after the military regime blocked plans.
ICSID penalty
19-Jul-2019 Express Tribune
In the Reko Diq case registered by Tethyan Copper Company, the dollar-starved Pakistan has been slapped a penalty way beyond its reach by the World Bank-sponsored ICSID.
Nord Stream 2, EU drifting towards legal arbitration
19-Jul-2019 Euractiv
The European Commission and the Nord Stream 2 gas pipeline company are heading toward legal arbitration in their dispute, with a risk of huge fines for EU taxpayers.
Ascent Resources starts legal action over Petišovci gas field
17-Jul-2019 Total Slovenia News
Ascent Resources plans to lodge an investment treaty arbitration claim under the Energy Charter Treaty.
Government decides to challenge award
15-Jul-2019 Business Recorder
The Pakistan government has decided to challenge the award ICSID award that includes $4.08 billion penalty and $1.87 billion interest.
Pakistan fined Rs950 bn in Reko Diq case
14-Jul-2019 The News International
The International Center for Settlement of Investment Disputes (ICSID) of World Bank has rendered almost $6 billion (Rs950 billion) award against Pakistan in Reko Diq case.
The free trade myth
10-Jul-2019 New Internationalist
ISDSs, legal mechanisms designed to favour corporate interests will be integral to any post-Brexit US-UK trade deal.
Corporations have ’hijacked justice’
9-Jul-2019 The Ecologist
Regional Comprehensive Economic Partnership trade deal would undermine environmental protections in Asia.
Italian construction company in legal dispute with Morocco’s AABV
27-Jun-2019 Morocco World News
The Italian company claims that Morocco has breached the 1990 Italy-Morocco bilateral investment treaty provisions.
EU-Vietnam trade deal a bad day for workers’ rights
25-Jun-2019 EU Observer
Behind the smiles and handshakes, the signature of the EU-Vietnam trade and investment deals - being agreed on Tuesday (25 June) and to be signed at the end of this week - have dire consequences for human well-being and our ability to prevent climate and ecological breakdown.
Arbitration overrules Tallinna Vesi tariff complaint, must pay costs
24-Jun-2019 ERR News
Tallinn water utility Tallinna Vesi has seen its claim against the Estonian state overruled by the International Centre for the Settlement of Investment Dispute (ICSID), and has been ordered to pay costs likely to be in excess of half a million euros.
New research shows public interest damage caused by corporate justice
24-Jun-2019 CEO, TNI, FOEE, FOEI
New research published today reveals the devastating consequences of the controversial Investor-State Dispute Settlement (ISDS) system
EU allows Romania to pay EUR 200 mln compensation to Romanian-Swedish investors
20-Jun-2019 Romania Insider
The European Court of Justice on June 18 canceled a European Commission decision dating 2015, which established that Romania’s payment of compensation to Romanian-Swedish investors Ioan and Viorel Micula constituted illegal state aid. The European Commission also ordered the Romanian Government to recover the money already paid to the investors following an international court’s decision.
New Dutch model BIT: negotiations to commence soon
19-Jun-2019 ILO
The Dutch government has obtained the authorisation required to start renegotiations with eight non-EU countries on its new model bilateral investment treaty and conclude new BITs with two others.
Hungary appeals Sodexo award with ICSID
17-Jun-2019 Budapest Business Journal
Hungary has filed to annul an award of some EUR 73 million, before interest, to French food voucher company Sodexo, granted in an arbitration ruling by the World Bankʼs International Center for Settlement of Investment Disputes (ICSID), state news agency MTI reported, citing case information on ICSIDʼs website.
QICDRC sign deal to become hub for dispute resolution
17-Jun-2019 Gulf Times
Qatar International Court and Dispute Resolution Center (QICDRC) on Sunday entered into a pact with a World Bank body as part of plans to enhance its profile in the global judicial system and establish itself as a hub for dispute resolution.
Legitimacy concerns of the proposed multilateral investment court: Is democracy possible?
13-Jun-2019 South Centre
The EU wants to replace traditional party-appointed arbitrators with a two-tiered investment tribunal system comprised by a roster of members selected by the state parties on the treaty. This essay argues that the creation of the multilateral investment court needs to follow democratic principles in order to be legitimate.
Backlash against investor-state dispute settlement mechanism
12-Jun-2019 Daily Asian Age
Three investment cases brought against Bangladesh to the International Centre for Settlement of Investment Disputes by foreign investors largely curved the regulatory powers of Bangladesh for public purposes.
Mine owner takes govt to arbitration
12-Jun-2019 Bangkok Post
Australian gold mining firm Kingsgate Consolidated is seeking negotiations with the new Thai government over the case in which it was ordered to cease mining operations in Phichit two years ago.