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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.

Telefonica awarded $380 million from Colombian government in arbitration, company says
15-Nov-2024 WTVB
Spanish telecoms company Telefonica said that the World Bank’s International Centre for Settlement of Investment Disputes had ordered the Colombian government to pay it $380 million as part of an arbitration process.
Disputed grounds: Gold mining, resistance and investment arbitration in Türkiye
15-Nov-2024 SOMO
Large-scale mining projects highlight complex tensions between states, foreign investors, and local communities, leading to environmental and social risks for communities.
Nigeria launches review of bilateral investment treaties
15-Nov-2024 African Law & Business
The state’s trade policies will be updated over the coming months by a nine-member committee.
Kenya terminates Bilateral Investment Treaty with the Netherlands
13-Nov-2024 SOMO
The government of Kenya has officially terminated its bilateral investment treaty (BIT) with the Netherlands, marking a significant win for economic justice and environmental protection.
International investment law and ISDS: Overcoming legal barriers to effective climate action under the UNFCCC and the Paris Agreement
12-Nov-2024 CIEL
The urgent need to address climate change is hindered by legal barriers within international investment law, particularly through Investor-State Dispute Settlement (ISDS) mechanisms.
Emmerson enters formal investment dispute with Moroccan government
7-Nov-2024 Morning Star
Emmerson PLC on Friday said it has entered into a formal investment dispute with the Moroccan government, with the intention to escalate to arbitration if discussions are unsuccessful.
Honduras against the corporate Goliath
7-Nov-2024 TNI
An impoverished country resisting foreign investors’ claims.
Second instalment of US$25 million received from Tanzania
29-Oct-2024 Indiana Resources
Indiana Resources Limited (ASX: IDA) is pleased to confirm that US$25million in funds have been received by the Claimants’ legal representatives from the United Republic of Tanzania as the second instalment of the US$90 million Settlement
Sarama Resources secures funding for Burkina Faso arbitration claim
26-Oct-2024 Stock Titan
Sarama Resources has secured a US$4.4 million non-recourse loan facility from Locke Capital II to fund international arbitration proceedings against the Government of Burkina Faso
Kenya’s energy goals could be jeopardised by foreign treaty, say experts
23-Oct-2024 The Standard
Critics argue that the ECT, designed to protect foreign investments, contains vague provisions that allow multinational corporations to sue governments for lost profits due to policy changes.
ISDS in numbers – Impacts of investment arbitration lawsuits against states in Latin America and the Caribbean
22-Oct-2024 TNI
This report presents a systematic overview of foreign investor lawsuits against countries across Latin America and the Caribbean (LAC) based on investment protection treaties up to 31 December 2023.
Czechia faces arbitration proceedings for allegedly thwarted investment
22-Oct-2024 Radio Prague International
Qucomhaps Holdings has initiated arbitration proceedings against the Czech Republic, claiming misconduct by law enforcement, insolvency courts, and administrators.
Third-party funder is the only winner in Odyssey Marine Exploration’s suit against Mexico
21-Oct-2024 Inequality.org
The country will likely have to pay over $30 million to an American litigation firm because it wanted to protect its environment from harmful seabed mining.
Labour unions express concerns about proposed free trade agreement with Ecuador
20-Oct-2024 United Steelworkers
We are writing on behalf of Canadian unions that are deeply concerned about the current negotiations for a free trade agreement with Ecuador.
After intra-EU BITs and the ECT, the EU needs to abandon extra-EU BITs—for legal, energy and climate policy, and political economy reasons
14-Oct-2024 CCSI
EU members should terminate extra-EU BITs. To facilitate the process, the EU could spearhead an instrument similar to the plurilateral agreement to terminate intra-EU BITs or based on the draft treaty language on termination proposed to UNCITRAL.
ExxonMobil sues the Netherlands over gas field closure
11-Oct-2024 SOMO
The multinational disagrees with the decision that gas production in the Dutch province of Groningen will be shut down early.
Breaking free: Strategies for governments on terminating investment treaties and removing ISDS provisions
9-Oct-2024 CCSI
In this report, we present three practical approaches governments can consider in the near term to address their current stock of international investment agreements with ISDS.
Australian mining firm trumps Poland in arbitration
9-Oct-2024 iclg
Invoking the Australia-Poland bilateral investment treaty, together with the Energy Charter Treaty, Green X has been awarded hundreds of millions of dollars over a thwarted mining project.
Scrap the UK-Colombia investment treaty: how corporate courts let UK companies undermine human rights and the environment
9-Oct-2024 Global Justice Now
In October 2024, the Colombia-UK Bilateral Investment Treaty reaches the end of its initial ten-year term. The UK and Colombian governments now have the opportunity to work together to terminate the treaty.
The surge in ISDS damages paid to global corporations, mostly by poor countries
8-Oct-2024 AFTINET
A UNCTAD note has highlighted the significant growth in damages in Investor-State Dispute Settlement. The average award size grew tenfold in the past three decades.