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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.

Free trade or women’s rights?
5-Jan-2018 Strategic Review
After 30 years of neoliberal globalization, it has been increasingly acknowledged that austerity, privatization, deregulation of finance, markets and corporations, and trade and investment liberalization have had a devastating and discriminatory impact on women.
Leaked documents reveal how Shell blackmailed Nigeria in Malabu deal
2-Jan-2018 Petro Barometer
Shell used an arbitration case it filed with the International Centre for the Settlement of International Disputes to railroad the government into brokering truce between it and Malabu Oil and Gas Ltd, its estranged erstwhile partner and the original licensee.
Pakistan spends over Rs2b on legal expenses in Progas case
2-Jan-2018 Express Tribune
The government has spent over Rs2 billion to win a case in the international court over the acquisition of assets of Progas Pakistan Limited company – worth Rs2.3 billion.
UNCTAD’s 2017 high-level IIA conference: moving forward on addressing older-generation international investment agreements
22-Dec-2017 IISD
More than 300 experts, including high-level negotiators of international investment agreements and representatives from intergovernmental organizations, civil society, academia and the private sector convened in Geneva.
Government regulatory space in the shadow of BITs: The case of Tanzania’s natural resource regulatory reform
22-Dec-2017 IISD
Tanzania passed three new laws that significantly change the regulatory landscape governing natural resources and the mining sector in particular.
Lee-Chin takes on Dom Rep - Businessman seeking US$300m from country’s government for expropriating his investment
22-Dec-2017 The Gleaner
Businessman Michael Lee-Chin has served notice that he intends to submit to arbitration a claim against the government of the Dominican Republic seeking to recover more than US$300 million in damages for expropriating his investment in that country.
Investment abitration: Peru faces new ICSID claims
21-Dec-2017 Lexology
In 2017, Peru has faced a number of new investment treaty claims, with several arising in the transportation sector.
British investor claims USD 500 million from Russian coal mine
21-Dec-2017 Steel Guru
A British investment group has demanded USD 500 million from Russia and accused the country of state-sponsored corporate theft in a battle for control of a Siberian coal mine.
ISDS in numbers
14-Dec-2017 TNI
Impacts of investment arbitration against Latin America and the Carribbean.
India’s top court allows Vodafone to initiate second arbitration over $2 bln tax demand
14-Dec-2017 Reuters
India’s top court allowed Britain’s Vodafone to initiate a second arbitration process under an India-UK investment pact .
New report shows that trade tribunals are threatening the right to water
12-Dec-2017 IATP
A new report finds that the Investor State Dispute Settlement (ISDS) process, included in NAFTA and other trade and investment agreements, is threatening the right to water around the world.
Japan, EU finalize trade deal, aim at implementation in early 2019
8-Dec-2017 Nikkei
Japan and the European Union finalized negotiations on a free trade deal, with the two sides aiming to implement it in early 2019.
T.N. seeks to stay Nissan arbitration
5-Dec-2017 The Hindu
The Tamil Nadu government moved the Madras High Court for an interim stay on carmaker Nissan Motor from proceeding with international arbitration over the alleged non-payment of incentives being claimed by it from the State.
Vietnam, EU seek to accelerate FTA signing
4-Dec-2017 Vietnam+
The FTA is expected to be completed and start in 2018 or 2019, while the ISDS will be discussed and agreed in later years.
Japan and EU to agree on EPA tariffs, put off investment deal
4-Dec-2017 Japan News
Japan and the European Union intend to bring an economic partnership agreement into effect in 2019 as planned by finalizing tariff-related measures first and setting aside those on investment.
ConocoPhillips and the Republic of Ecuador agree to settlement of ICSID award
4-Dec-2017 The Financial
Under the terms of the agreement, ConocoPhillips will recover a total of $337 million from Ecuador.
Bear Creek wins C$30.4m award in international arbitration against Peru
4-Dec-2017 Mining Weekly
The arbitrators agreed with the company that Peru had breached its obligations to the company under the Canada-Peru Free Trade Agreement when it expropriated the company’s Santa Ana silver project, in 2011.
Nissan sues India over outstanding dues; seeks over $770 million
1-Dec-2017 Reuters
Japanese automaker Nissan Motor has begun international arbitration against India to seek more than $770 million in a dispute over unpaid state incentives.
NZ ’could not’ apply water tax - diplomat
30-Nov-2017 Radio NZ
Government plans to put a royalty on exports of bottled water could be in jeopardy after a top trade negotiator warned MPs it would breach trade deals.
The Multilateral Investment Court locking in ISDS
28-Nov-2017 Friends of the Earth Europe
Ten reasons why the EU’s proposal for a Multilateral Investment Court doesn’t fix a fundamentally flawed system.