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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.

US investors demand $96m for loss of Rwanda contracts
11-Feb-2019 The East African
A group of US investors have taken Rwanda to an international court, seeking compensation of $95 million after the government seized their mining concessions, effectively denying them operating licences.
Turkish RPP ship: Pakistan breathes $900mn sigh of relief
8-Feb-2019 Express Tribune
Pakistan said to have gathered fresh ‘evidence of corruption’ in the procurement of a rental power project (RPP) contract by the Turkish company.
Sued for existing – ancient Romanian town on the frontline of the battle against ISDS
6-Feb-2019 Stop ISDS
Today, the 6th of February 2019, the Romanian town of Roşia Montană celebrates its 1888th year of existence. Over the past 20 years, residents have fought against a proposed multi-billion dollar mining project.
Arbitration ruling from the ICSID delivered in favor of Sodexo’s benefits and rewards activities in Hungary
5-Feb-2019 Globe Newswire
Hungarian State has been ordered to pay Sodexo an award of about 73 million euro, before interest.
Stop ISDS! Rights for people, rules for corporations
30-Jan-2019
EU-Canada trade deal is lawful: EU court adviser
29-Jan-2019 Reuters
The EU-Canada free trade deal’s provisions on investor protection are in line with EU law, a senior court adviser said in a recommendation to the European Court of Justice.
Meet the corporations who sue governments to undermine progressive change
24-Jan-2019 Open Democracy
Campaigners dressed as wolves in suits invaded the streets of Davos to highlight the real face of private-sector influence.
Belarus faces its first investment claims
22-Jan-2019 Belarus Digest
In late 2017 and 2018, Belarus faced a record-breaking three investment arbitration claims.
Stop ISDS! Rights for people, rules for corporations
22-Jan-2019 TNI
Join the movement to end corporate privilege, sign the petition!
Most EU countries to terminate intra-bloc bilateral investment treaties
18-Jan-2019 New Europe
22 of the 28 EU nations have committed to terminate their bilateral investment treaties and use their influence as home states and respondent-states to notify tribunals of the non-arbitrability of intra-EU bilateral investment treaties and Energy Charter Treaty claims.
Corporate social responsibility clauses in investment treaties
17-Jan-2019 IISD
Corporate social responsibility provisions do not change the corporate or ethical duties of companies into enforceable legal obligations in the context of dispute settlement proceedings but they could help significantly moralize the use of treaty-based arbitration.
German company requests arbitration with Morocco at World Bank agency
7-Jan-2019 Morocco World News
A metallurgical industry project is the center of the dispute.
There’s a hidden cost in Trump’s new trade agreement with Canada and Mexico
3-Jan-2019 Washington Post
Investment treaties with ISDS provisions make it hard to tax foreign firms and worsen human rights and labor practices.
Belarus - India BIT (2018)
3-Jan-2019 Ministry of External Affairs, Goverrnment of India
As released by the Goverrnment of India
EU’s investment court may be bump in China’s Belt and Road plan
2-Jan-2019 MENAFN
The EU has proposed to reform the investor-state-dispute-settlement system, a move that could further complicate negotiations with China over a bilateral investment agreement, as well as their dialogue on the Belt and Road Initiative’s implementation in Europe.
Want to sue Venezuela for millions? These firms can help, for a price
21-Dec-2018 Reuters
Investment funds backing a slew of big-dollar corporate lawsuits has boomed over the past decade, fueled by favorable court rulings and investors seeking juicy returns.
The fossil fuel era is coming to an end, but the lawsuits are just beginning
19-Dec-2018 The Conversation
Westmoreland Coal is suing Canada because it did not receive a transition payment following Alberta’s coal phaseout plan. For the province, coal mining companies have no role to play in the energy transition.
Today we work to build something else than free trade, says Javier Echaide of Attac Argentina
18-Dec-2018 bilaterals.org
Interview with Javier Echaide, lawyer and member of Attac Argentina
Trade agreements and the land: Investment agreements and their potential impacts on land governance
18-Dec-2018 Global Development and Environment Institute
While promising economic growth, large-scale land investment deals have caused increased inequality, widespread displacement of people, and destruction of natural resources.
The legal clause which could allow Adani to sue Australia
17-Dec-2018 The Guardian
Global corporations should not have special legal rights to undermine the policies of democratically elected governments.