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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.

More than 300 civil society organizations from 73 countries urge fundamental reform at UNCITRAL’s Investor-State Dispute Settlement discussions
30-Oct-2018
More than 300 civil society groups and trade unions urged governments participating in United Nations meetings in Vienna to completely overhaul the controversial Investor-State Dispute Settlement (ISDS) system.
EU-Vietnam trade and investment agreements (Aug 2018)
28-Oct-2018 European Commission
As published by the European Commission
How to make investment agreements more progressive: stop signing them
28-Oct-2018 Globe and Mail
Unverified rumours circulated in early 2018 that Canada was willing to abandon NAFTA’s provisions entitling foreign investors to sue for damages under what is called investor-state dispute settlement, or ISDS.
How the lobbies used the threat of ISDS to neuter the Hulot Act
27-Oct-2018 Le Monde
The documents highlight for the first time the pressure placed on the French parliament by a foreign company’s threat to use the ISDS mechanism.
It’s time to stop giving more rights to global corporations
26-Oct-2018 Sydney Morning Heralds
The UN Conference on Trade and Development new research shows that increased market power of global corporations is driving global income inequality. It recommends a review of existing regulation and trade agreements to develop “measures to curb abusive business practices.”
Korean utility refers India to arbitration
24-Oct-2018 Natural Gas World
South Korean utility Korea Western Power Company (Kowepo) has begun arbitration proceedings against India for not honoring a fuel supply commitment to a gas-based power plant that it part-owns in western India
Kenya wins big in Ksh.200B Cortec Mining case
23-Oct-2018 Citizen Digital
A case filed by Cortec Mining Ltd and two others against the Republic of Kenya under the Kenya-UK BIT amounting to Ksh.200billion has been dismissed.
Liberals should consistently fight trade deals that let corporations sue Canada
21-Oct-2018 Huffington Post
Investor-state dispute settlement was tempered in the USMCA, but the government needs to justify why it persists asking for it in other agreements.
Schindler sues Korean gov’t over Hyundai Elevator
15-Oct-2018 Korea Herald
Swiss elevator maker, Schindler Group, has officially filed for an investor state dispute settlement against the Korean government seeking US$300 million in compensation for losses over its approval of paid-in capital increase of Hyundai Elevator
Crossbenchers plot to embarrass Labor over Trans-Pacific Partnership
12-Oct-2018 Financial Review
Crossbenchers are ramping up pressure on Labor at the 11th hour to reject the Trans-Pacific Partnership free trade agreement, drafting amendments that would force opposition senators to vote against the party’s policy.
New briefing note – agricultural investments under international investment law
11-Oct-2018 IISD
The number of known investment treaty claims concerning agricultural investments has grown rapidly in recent years. This new briefing note from IIED, IISD and CCSI helps policy makers navigate the challenges.
Singapore, Indonesia ink pact to offer protection, global arbitration access to investors
11-Oct-2018 Business Times
Singapore and Indonesia signed an agreement to promote and protect investments, with the treaty promising Singapore companies operating in Indonesia protection and access to international arbitration in the event of investment disputes.
Tanzania ends investment treaty with Netherlands
8-Oct-2018 The East African
Tanzania has terminated its Bilateral Investment Agreement with the Netherlands that East African and Dutch civil society had said was biased against the country.
Big oil and gas companies are winners in Trump’s new trade deal
4-Oct-2018 Washington Post
The oil business persuaded the White House to keep a number of features of the old NAFTA, including provisions that help protect US oil companies’ investments abroad and allow for tax-free transport of raw and refined products across borders.
Trump’s NAFTA deal threatens our air, water, and climate
1-Oct-2018 Sierra Club
More outsourcing of pollution and jobs, handouts to corporate polluters, and climate denial
From Quito: Pablo Fajardo & Donald Moncayo
28-Sep-2018 TeleSur
Pablo Fajardo, the lead lawyer for the communities who have been fighting for 25 years for compensation for the severe pollution in the amazon region, and Donald Moncayo, one of the coordinators of the organization that has led this campaign talk about the Chevron case.
Review Tanzania, The Netherlands investment agreement, CSO says
27-Sep-2018 The Citizen
Tanzania is urged to review the 15 years Bilateral Investment Treaty (BIT) with the Kingdom of Netherlands expires in April 2019 before it reckons itself for another 10 years.
’New’ CETA tribunals - old undemocratic system
24-Sep-2018 Friends of the Earth Europe
Our analysis of the leaked draft code of conduct of CETA tribunals reveals that the same people known as ISDS arbitrators and counsellors will now take over CETA tribunals.
Costa Rica wins case against investors’ beach front property
21-Sep-2018 TeleSur
ICSID tribunal rules Costa Rica was in its right to stop a tourist construction project on the Pacific coast that violated environmental laws.
Rethinking international investment governance: Principles for the 21st century
19-Sep-2018 CCSI
The Columbia Center on Sustainable Investment is hosting a two-day conference on rethinking international investment governance, which seeks to elaborate principles for a progressive investment agenda.