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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.

Ecuador withdraws from its remaining investment treaties
24-May-2017 South Centre
The withdrawal of Ecuador from these BITs responds to the final stage of a review process that started in 2008, and which had led to the establishment of a joint government-civil society audit commission.
Opinion 2/15 and the future of mixity and ISDS
22-May-2017 European Law Blog
The Court’s Opinion has consequences for future EU trade deals such as CETA and potentially a future UK-EU FTA.
A turning of the tide against ISDS?
19-May-2017 EJIL: Talk!
The Court of Justice for the European Union fired a significant shot at investor-state dispute settlement (ISDS), and the result is likely to be much more than just a flesh wound.
BRICS in Africa: more of the same? Pacs’ study compares investment treaties between the BRICS and African countries
19-May-2017 PACS
The BRICS Group was born in the century XXI with renewed expectations of changes in the world order through greater participation of the Global South. However, what we have witnessed so far is the consolidation of a new/old unequal world order.
Why RCEP is the problem, not the solution
18-May-2017 Inquirer.net
RCEP negotiations have been highly conspiratorial and undemocratic, with all 18 rounds of trade discussions held in secret and no reports shared with the public
EU ruling could complicate new trade deals - including UK’s
17-May-2017 NZ Herald
If all parliaments in member states have to approve international trade deals, future trade deals may take even longer than they already do to come to fruition.
US oil firm Cobalt files for arbitration against Angola for $2 bln
17-May-2017 Reuters
U.S. oil firm Cobalt said it had filed requests for arbitration seeking more than $2 billion from Angola’s state-run Sonangol.
RCEP’s digital trade negotiations remain shrouded in secrecy
17-May-2017 Electronic Frontier Foundation
There has also been no official release of the chapters and textual proposals related to rules that are being tabled.
Nigeria and Morocco move towards a “new generation” of bilateral investment treaties
16-May-2017 EJIL: Talk!
The treaty is an important attempt by two developing countries to move toward a new generation of BITs fully aligned with the evolution of international law.
Singapore trade deal cannot be concluded by EU alone, ECJ rules
16-May-2017 EurActiv
The European Union will have to secure approval from national parliaments in order to finalise a free trade deal with Singapore. The bloc’s top court ruled that the agreement in “its current form” cannot be handled by the Commission acting alone.
Is international investment law moving the ball forward on IHRL obligations for business enterprises?
15-May-2017 EJIL: Talk!
While the debate on the treaty regulating business impact on human rights is likely to continue for a while longer, some recent developments in international investment law seem to be moving forward on international human rights law obligations for businesses
Withdrawal from investment treaties: An omen for waning investor protection in Asia-Pacific?
15-May-2017 Lexology
While India and Indonesia may have withdrawn from existing BITs, this does not necessarily leave foreign investors without any protection.
Protests mark RCEP Manila rounds
12-May-2017 People Over Profit
#NoRCEP week of actions at the 18th TNC Meeting of the Regional Comprehensive Economic Partnership
Morocco and Nigeria sign new investment treaty
11-May-2017 ISDS Blog
Morocco and Nigeria signed a new investment treaty, which is a good illustration of the new “generation” of investment protection.
Ecuador’s Correa takes last stand of sovereignty against harmful investment pacts
11-May-2017 Tele Sur
Just days before his term ends, Rafael Correa said he will take a stand against agreements signed before the country’s Citizens Revolution.
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