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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.

Sweden sued for $1.8 billion due to environmental regulation
13-Dec-2019 Handelsgranskaren
For the first time, Sweden has recieved a notice of arbitration for banning the exploration and mining of uranium.
US banned climate from UK trade talks
11-Dec-2019 The Ecologist
The US has banned any mention of climate change in US-UK trade talks.
Korean company starts arbitration against India
10-Dec-2019 Economic Times
South Korean state owned power utility Kowepo has begun international arbitration proceedings against India in Singapore for not honouring a fuel supply commitment to its Maharashtra power plant.
EU governments under pressure to quit Energy Charter Treaty
10-Dec-2019 Forbes
Climate campaigners are demanding that European Union countries pull out of the treaty unless they can negotiate an end to the pact’s investor-state dispute mechanism.
Open letter on the Energy Charter Treaty (ECT)
9-Dec-2019 ECT’s Dirty Secrets
We – 278 environmental, climate, consumer, development, and trade related civil society groups, as well as trade unions – believe that the ECT is incompatible with the implementation of the Paris Climate Agreement.
Civil society seeks reforms to stem trade suits losses
9-Dec-2019 The East African
Civil society groups are now calling on governments to reform their investor state dispute settlement because “it is being unfairly used by investors to sue states for millions of dollars.”
Experts caution Uganda on investment treaties
5-Dec-2019 Daily Monitor
Most Bilateral Investment Treaties (BITs) are not just used by investors to inform their investment decisions, but are increasingly becoming tools used to sue States in a foreign or international court.
How World Bank arbitrators mugged Pakistan
27-Nov-2019 Project Syndicate
Thanks to the World Bank’s flawed and corrupt investment arbitration process, the rich are making a fortune at the expense of poor countries.
Spain offers green energy investors incentives to drop lawsuits
27-Nov-2019 Reuters
The government will offer subsidies which will allow investors that abandon litigation to maintain their current profitability rate of 7.39% until 2031.
Amulsar uncertainty continues: A local activist and diaspora armenians share their concerns
18-Nov-2019 HETQ
Roads to the Amulsar gold mine have been closed for a year and a half by residents of neighboring communities opposed to the mine operated by Lydian who is considering international arbitration.
Aura Energy files claim against Sweden to recover losses following uranian mining ban
12-Nov-2019 Stock Market Wire
Aura Energy lodged a claim against Sweden to recover the losses incurred from the Haggan uranium project following the country’s decision to ban uranian mining.
CTU concerned with "upgrade" of China Free Trade Agreement
6-Nov-2019 Scoop Politics
The CTU is concerned that the "upgrade" of the New Zealand-China Free Trade Agreement has not removed the threat of investor suits against the New Zealand government.
Pakistan escapes $1.2 billion penalty as Turkey helps resolve Karkey dispute
5-Nov-2019 Business Recorder
The Karkey dispute between the government and a Turkish ship-based energy firm has finally been resolved due to efforts of Turkish government, Prime Minister Imran Khan said.
Stop the unfair investor-state dispute settlement against Africa
4-Nov-2019
Civil society and trade union statement to oppose the recent World Bank Court ruling against Tanzania.
It’s time to scrap the Energy Charter Treaty
30-Oct-2019 Euractiv
The EU taxpayer is the main loser from the continuation of the Energy Charter Treaty which locks Europe into carbon and energy injustice at a high cost to taxpayers.
Trade agreements pre-empt sissent: An interview with AFTINET’s Dr Patricia Ranald
30-Oct-2019 Sydney Criminal Lawyers
Interview with AFTINET convenor Dr Patricia Ranald about how the ISDS regime developed, the reasons why these mechanisms are so detrimental, and the impact the TPP-11 agreement could have on Australia.
Activists demand Trade Democracy at the site of Peterloo
30-Oct-2019 Trade Action Blog
200 years ago, democracy activists died in Manchester, while peacefully campaigning for the vote. On the bicentennial of the massacre, activists protested against the threat to democracy from the corporate court system.
Connecting trade and climate chaos
28-Oct-2019 The Ecologist
We must call for an end to the deregulatory ‘free trade’ and tax policies that make practices like re-importation and redundant trade profitable.
EU Member States agree on a plurilateral treaty to terminate bilateral investment treaties
28-Oct-2019 European Commission
EU Member States committed to terminate their intra-EU bilateral investment treaties in a coordinated manner by means of a plurilateral treaty.
Bad bilateral trade deals haunting Africa
28-Oct-2019 The East African
The growing number of legal suits that multinational companies are bringing against Tanzania and other African countries is a major concern.