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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.

Venezuela lawyer says $1.4 billion Exxon damages award overturned
10-Mar-2017 Reuters
A World Bank tribunal’s order for Venezuela to pay $1.4 billion in damages to Exxon Mobil Corp over nationalizations has been annulled
Stop RCEP. Trade for the People. Not for Corporate Elites
7-Mar-2017 People Over Profit
People Over Profit Statement on the 17th Round of Negotiations of the Regional Comprehensive Economic Partnership (RCEP) in Kobe, Japan 27 Feb-3 March 2017
On the issues raised by the Canadian side on MFN-forward
6-Mar-2017 DNA
Sitharaman clarified that the negotiation should not get lost in peripheral issues and should focus on bringing in promotion and protection elements.
A new NAFTA, but not necessarily a better one
3-Mar-2017 Open Canada
NAFTA has its fair share of critics who want to see it updated. But if Trump has his way, a re-negotiated agreement may prove disappointing.
RCEP investment chapter presents a grave threat to access to medicines
3-Mar-2017 MSF
Médecins Sans Frontières (MSF) raises concerns over provisions under negotiation in the RCEP investment chapter that threaten to restrict access to affordable medicines for millions of people
India refuses to accede to European Union requests; post-March, investors to have no legal cover
2-Mar-2017 Financial Express
Fresh investments by European companies in India and vice versa after April 1 won’t enjoy legal protection under any bilateral arrangement, as India has decided not to accede to requests by the European Union.
RCEP, an attack on food sovereignty, must be junked – PCFS
2-Mar-2017 People’s Coalition on Food Sovereignty
RCEP will be harmful to developing countries’ struggle for industrialization, access to cheaper medicines, quality social services, and protection of the environment
Unpacking trade and investment
2-Mar-2017 Rosa Luxembourg
Series of 11 fact booklets about global trade policies.
EU-Japan FTA - draft investment chapter (February 2017)
2-Mar-2017
EU-Mexico FTA - draft investment chapter, investment court system section (EU text proposal, February 2017)
2-Mar-2017
Govt costs for tobacco case still secret
2-Mar-2017 The Australian
Taxpayers are still in the dark about how much of their money has been spent on fighting tobacco giant Philip Morris over plain packaging laws.
TransCanada’s $15 billion U.S. Keystone XL NAFTA suit suspended
28-Feb-2017 Reuters
TransCanada Corp has suspended a $15 billion NAFTA suit filed against the United States over the Keystone XL pipeline after U.S. President approved the project.
Protecting the rights of tribals
28-Feb-2017 The Hindu
Even as bilateral investment treaties are strengthened, domestic legislation must be implemented.
Trade deal ups risks in Chinese firm’s takeover of seniors’ care giant
28-Feb-2017 The Tyee
FIPA means province could be blocked from improving care standards for residents.
As Trump quashes TPP, Canada pushes pact with India
28-Feb-2017 The Hindu
But Ottawa’s stance on model investment treaty has New Delhi worried
India should not let Europe undermine its new BIT and TRIPs flexibilities for medicines
27-Feb-2017 Sunday Guardian Live
There is no principled basis for EU’s demand of extending patent protection beyond the period of 20 years.
Europe pushes ahead with controversial Canadian trade deal, opens door for tar sands
27-Feb-2017 Desmog
The trade deal could facilitate energy companies suing Member State governments when environmental policies threaten their profits.
Investor-state dispute settlements: great for business, risky for the environment
23-Feb-2017 Ecojustice
What makes ISDS divisive is it exposes governments to potentially expensive private arbitration by foreign corporations who feel that environmental protection measures impede their business.
Freeport’s threat of arbitration simply a ploy to block mining reform
23-Feb-2017 Jakarta Post
International arbitration within the investor-state-dispute settlement (ISDS) mechanism has become a powerful weapon exploited by MNCs to circumvent national regulations and bully governments
Pressure grows on mining giant to pay $8 million to El Salvador
23-Feb-2017 Tele Sur
Over 280 organizations from around the world sent an open letter to Canadian-Australian mining giant OceanaGold demanding that the company adhere to an earlier ruling that ordered the company to pay the government of El Salvador US$8 million