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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.

Investment protection proposals under RCEP threaten India’s pharma industry
15-Mar-2019 The Wire
Free trade agreements like the RCEP will infringe on India’s intellectual property laws. India must stand its ground in the interest of public health.
NextEra Energy wins dispute against Spain
15-Mar-2019 Renewables Now
The ICSID ruled against Spain in a case brought by NextEra Energy Inc regarding the US utility’s lost investments in two 49.9-MW concentrated solar power plants.
Lydian International submits notices to the Government of Armenia under bilateral investment protection treaties
12-Mar-2019 Proactiveinvestors
The company said illegal blockades have prevented access to the Amulsar gold project since late June 2018.
Venezuela must pay Conoco over $8 billion: World Bank
9-Mar-2019 Reuters
Venezuela must pay ConocoPhillips more than $8 billion to compensate for the 2007 expropriation of oil assets by the country’s late socialist leader Hugo Chavez, the World Bank ruled.
Building a mirage: The effectiveness of tax carve-out provisions in international investment agreements
7-Mar-2019 South Centre
The broad language in investment agreements has allowed investor-state dispute settlement tribunals to scrutinize tax measures adopted by States, and determine that such measures resulted in a breach of State’s obligations under the agreement.
It’s more than a free trade agreement. But what exactly have Australia and Indonesia signed?
6-Mar-2019 The Conversation
Indonesia – Australia CEPA signed without prior released text to assess its costs and benefits.
Korea`s first for-profit hospital in Jeju faces license revocation
5-Mar-2019 Pulse
The Korea government may face another investor-state dispute case from the Chinese capital if the license is called off.
Shell put Nigeria under pressure with ISDS process to obtain oil field OPL 245
1-Mar-2019 SOMO
Shell used the investment agreement between the Netherlands and Nigeria to obtain a lucrative oil field at remarkably good conditions.
French firm Suez explores selling off debt claim against Argentina
27-Feb-2019 Buenos Aires Times
French waste and water group Suez SA has contacted "specialised funds" about possibly selling its debt claims to Argentina, the group announced.
Chevron Vs Ecuador: international arbitration & impunity (ISDS case)
27-Feb-2019 Dismantle Corporate Power and Stop Impunity
In February of 2011 the Ecuadorian Courts delivered an historic verdict, sentencing the Big Oil Corporation Chevron to pay US$9,500 million dollars for its contamination of the Ecuadorian Amazon (1964-1992). However, Chevron hit back via the Investor-State Dispute Settlement system and sued Ecuador.
Lessons from Aotearoa: The indigenous “exception” clause in free trade agreements
26-Feb-2019 Yellowhead Institute
Exception clauses amount to little more than tokenism, and short-change our full rights to determine trade relationships on our land and oceanic territories.
Canada ordered to pay US concrete company $7M in NAFTA case
26-Feb-2019 CBC
Long-running case began after New Jersey company’s bid to open a quarry in Nova Scotia rejected in 2007
Why East Africa needs new funding sources
25-Feb-2019 The East African
Seatini said East African countries should find alternative ways to finance development projects rather than depend on public-private partnerships and bilateral investment treaties, which have cost the region dearly.
We cannot allow Liam Fox’s post-Brexit trade plans to go unscrutinised
22-Feb-2019 The Guardian
Trade deals containing clauses that threaten human rights are being debated in parliament – they must be defeated
Russel Norman – climate change and free trade
21-Feb-2019 Daily Blog
The panel on a sustainable world at the hui in October 2018 on What an Alternative and Progressive Trade Strategy for New Zealand argued for major changes to address pressing environmental issues.
Much to fear from post-Brexit trade deals with ISDS mechanisms
21-Feb-2019 The Guardian
Investor-state dispute settlement is a threat to human rights, health and the environment, say representatives of trade unions, charities and faith groups.
Q&A: Stop corporate courts
15-Feb-2019 Global Justice Now
A Q&A to deal with tricky questions about corporate courts and our campaign against them.
Investor-state dispute settlement in Tanzania
12-Feb-2019 The Citizen
Tanzania has embarked on process of regulation of its foreign investment regime by enacting legislation, which exclude international arbitration.
The EU-Singapore investment protection agreement
11-Feb-2019 SOMO
An analysis of its impact on managing government bonds and capital flows.
MEPs take note: EU-Singapore deal could hinder fight against fraud and corruption.
11-Feb-2019 Stop ISDS
The most worrying thing about the EU-Singapore deal is not the risk that Singapore firms themselves pose, but the fact that the agreement looks set to be used as a model for reinvigorating ISDS.