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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.

“Shocking and sad”: how corporations use investment agreements to block decarbonisation in the Global South
12-Dec-2024 Land and Climate Review
Experts talk about investor-state dispute settlements, which allow fossil fuel companies to bring multi-billion dollar lawsuits against countries that pass green policies.
Civil society organisations push for transformative global investment rules
11-Dec-2024 SOMO
The Entebbe Declaration calls for justice and sustainability in global investment governance.
How to buy a piece of a lawsuit and impoverish a country
10-Dec-2024 Inside Climate News
Investors buying into claims against governments are winning huge payouts. Developing nations, and the environment, are losing big.
Panthera Resources’ arbitration re-rating possibility too large to ignore, suggests broker
10-Dec-2024 Proactive
Panthera Resources PLC has been highlighted by VSA Capital as one of a growing number of small caps offering potentially significant upside via international litigation.
Emmerson launches arbitration against Morocco over potash dispute
9-Dec-2024 MSN
The company announced on its intention to file a case with the International Centre for Settlement of Investment Disputes following a setback related to the environmental assessment.
PLUNA airlines arbitration fallout: Uruguay’s assets targeted In Luxembourg
5-Dec-2024 Aviacionline
The Latin America Regional Aviation Holding has intensified its legal dispute with Uruguay following the country’s failure to comply with the arbitral award related to the closure of Pluna.
Uruguay found liable in treaty dispute with airline company investor
5-Dec-2024 Kluwer Arbitration Blog
The dispute concerned Uruguay’s national airline Pluna, where the Claimant, a Panamanian company – Latin American Regional Aviation Holdings S. de S.R.L. acquired in 2007 a 75% stake through its subsidiary Leadgate.
The Energy Charter Treaty remains the most dangerous investment treaty to the energy transition
4-Dec-2024 E3G
Our ranking reveals that the Energy Charter Treaty remains the most dangerous investment treaty to the energy transition by protecting over 300 megatonnes (Mt) of greenhouse gas emissions.
India-EU FTA: Investment chapter to include FDI liberalisation, exclude protection, arbitration
4-Dec-2024 The Hindu BusinessLine
The proposed India-EU Free Trade Agreement is likely to focus on investment liberalisation, while keeping investment protection and arbitration out of the pact, to be negotiated separately in a bilateral investment treaty.
Energy Charter Treaty modernisation adopted, still undermines climate action
3-Dec-2024 Friends of the Earth Europe
Even after modernisation, the ECT continues to undermine European and global climate policies.
Venezuela ratifies new bilateral investment treaty with China
29-Nov-2024 Herbert Smith Freehills
This treaty marks a significant step in Venezuela’s recent trend of executing BITs, particularly following its withdrawal from the ICSID Convention in 2012.
Panama agrees $26m payment to settle dispute with US miner
28-Nov-2024 Mining.com
Panama has agreed to pay $26 million to settle a dispute with Dominion Mineral Corp. after losing an arbitration award in 2020 over the US mining company’s copper-gold exploration licences.
Colombia to renegotiate arbitration issues of FTAs with the US and UE
25-Nov-2024 Prensa Latina
Colombia’s President said that Colombia will try to renegotiate the Free Trade Agreements with the European Union and the United States, concerning arbitration prerogatives based on national law.
A bilateral investment treaty with a ‘bit’ of change
22-Nov-2024 The Hindu
Despite some departures, the India-UAE bilateral investment treaty establishes a continuity of India’s investment treaty practice.
ICSID takes cognizance of Turkish firm’s claim against Pakistan
22-Nov-2024 The News International
ICSID Tribunal decides to proceed with adjudication on quantum of amounts owed to Bayindir by Pakistan.
British Virgin Islands court grants Chinese firm right to seize Nigerian $25m assets
21-Nov-2024 Business Day
The ruling marks the latest in a string of losses Nigeria has suffered in foreign jurisdictions over the past years.
Montero agrees to US$27 million settlement from Tanzania
21-Nov-2024 Montero Mining
Montero has agreed to a US$27,000,000 settlement amount to end its dispute with the United Republic of Tanzania
FinMin not keen on inclusion of BIT in free trade pacts: Sources
15-Nov-2024 The Hindu BusinessLine
Investment chapters in India FTAs may be limited to investment promotion, facilitation.
Campaigners call for Cop29 to commit to ending secretive corporate courts
15-Nov-2024 Morning Star
Investor-state dispute settlement (ISDS) courts are a legal mechanism that allow corporations to sue governments for decisions which they claim impact their profits — including environmental protections.
Vedanta parent moves Permanent Court of Arbitration against Indian govt
15-Nov-2024 Mint
UK-based Vedanta Resources Ltd raising a dispute against the government of India brings the challenges of investor-state arbitration into limelight.