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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.

ICSID committee annuls nearly 90% of award against Venezuela
9-May-2017 Lexology
An International Centre for Settlement of Investment Disputes (ICSID) Committee has annulled nearly 90% of the US$1.6 billion Award which had been won by ExxonMobil affiliates in their ICSID arbitration against Venezuela.
Spain loses first arbitration claim over cuts to renewable energy subsidies
9-May-2017 El País
Spain has lost its first international arbitration process over cuts to renewable energy subsidies
RCEP will hurt local industry and allow workers’ exploitation, says civil society
9-May-2017 Down to Earth
RCEP is being negotiated in secrecy, but it is likely to favour big companies and threaten India’s agriculture, industry and e-commerce sectors
Stop trading workers’ rights over profits
8-May-2017 Forum on FTAs
RCEP magnifies existing inequalities and discriminates against women, indigenous peoples, people living with HIV or other illnesses, people with disabilities,rural communities, farmers and workers
Australia-US free trade agreement leaves US companies in the lurch
5-May-2017 The Hill
The lack of a defined procedure under the AUSFTA is extremely prejudicial to U.S. companies and banks: chairman of APR Energy
Beyond investment protection: group warns of intensified corporate attacks vs people’s rights as ASEAN leaders meet in PH
5-May-2017 People Over Profit
The People Over Profit network together with local civil society organizations in the Philippines warn of intensifying corporate attacks on people’s rights and join calls for an independent, sovereign and peaceful Southeast Asian region.
RCEP: Corporations could sue governments
3-May-2017 AFTINET
ISDS is increasingly being used by global corporations to challenge health, environment and other public interest laws.
High Court the final authority? Think again
2-May-2017 Sydney Morning Herald
US mining company Nucoil is using a free trade agreement to put pressure on the Australian government to pay compensation over cancelled licences.
Negotiations this week on EU-Myanmar Investment Protection Agreement
2-May-2017 European Commission
Negotiators discussed the EU’s reformed approach to investment protection and investment dispute resolution.
TRIPS flexibilities under threat from investment disputes: a closer look at Canada’s “win” against Eli Lilly
28-Apr-2017 IP Watch
Although Canada won in a unanimous decision, the ruling does not, however, guarantee domestic discretion going forward, contrary to the suggestion of some.
Employment crisis and free trade agreements( FTAs) : Why workers should reject RCEP
27-Apr-2017 Forum against FTAs
Trade unions, farmers groups, health activists, and other people’s movements are planning to organise a series of events to put pressure on the Government of India to withdraw from RCEP negotiations.
FinMin to look into changes sought by Canada in draft bilateral treaty
27-Apr-2017 The Hindu
Enormous political pressure to get the bilateral, economic treaties off the ground, say officials.
Trading with Trump – What we can expect from a UK-US trade deal
24-Apr-2017 Global Justice Now
A new briefing has outlined the likely elements of a UK-US trade deal and argues that it would contain more extreme forms of all the controversial elements of the deal that was being negotiated between the EU and the USA.
Canada’s Gran Colombia Gold files $700 million lawsuit against Colombia over Marmato project
24-Apr-2017 Financial Post
Canadian miner Gran Colombia Gold has filed a US$700 million lawsuit against Colombia under the Colombian-Canadian free trade agreement after the government ordered the company to cease operations at the El Burro site in Marmato.
Corporate sovereignty used to bully Ukraine, Colombia and Italy for protecting public health and the environment
21-Apr-2017 Tech Dirt
ISDS is an attempt to remove the risk of investment from companies, and place it squarely on the public’s shoulders, without any quid pro quo.
Dispute settlement becomes speculative financial asset
20-Apr-2017 IPS
ISDS provisions of investment treaties, free trade and other agreements have increasingly provided an investment opportunity to make money by speculating on lawsuits.
Treating intellectual property as an investment, and subjecting it to treaty arbitration, can have undesirable impact
19-Apr-2017 Economic Times
Free trade agreements tend to treat intellectual property as an investment made by investor corporations, allowing private investment disputes to be raised against the host country.
El Salvador freezes OceanaGold bank accounts, assets over $8 mln payment
19-Apr-2017 Reuters
El Salvador froze bank accounts and assets belonging to OceanaGold Corp after the mining company refused to pay the country $8 million as mandated by an international court.
Is it time to redesign or terminate investor-state arbitration?
14-Apr-2017 CIGI
A clean break is needed to restore trust, but these stiff tests must be met.
Ontario coughs up $28M to wind power company
14-Apr-2017 The Whig
The Ontario government says it has paid a $28-million award that a NAFTA tribunal ruled was owed to a wind power company over a provincial offshore wind moratorium.