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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.

Govt asked to ignore Freeport’s lawsuit threat
22-Feb-2017 Antara News
The Indonesian Institute for Global Justice has asked the government to consistently apply the state regulation number 4 of 2009 and ignore Freeports threat to bring its legal dispute with the government to the International Court of Arbitration.
India should hold firm against the European efforts to undermine its new model Bilateral Investment Treaty
22-Feb-2017 International Economic Law and Policy Blog
In the transition to its new approach to investor protection, India has sought to terminate its existing BITs with individual EU Members. Now the European Commission is pressuring India to extend those existing treaties.
Freeport warns of arbitration as Indonesia mining dispute escalates
20-Feb-2017 Reuters
U.S. mining giant Freeport warned it could take the Indonesian government to arbitration and seek damages over a contractual dispute that has halted operations at the world’s second-biggest copper mine.
Australia’s march towards corporatocracy
20-Feb-2017 The Conversation
While consultancies, political donations, secondments and staff movements magnify corporate influence over government, an equally sinister trend is playing out in the world of multinational corporations.
S2B position on the European Commission proposal for a multilateral ISDS mechanism
20-Feb-2017 S2B
Globalisation is at a dangerous crossroads. One path leads to regained policy-space for governments to address climate change, inequality and other pressing issues of our times. The other leads to more rights for corporations to bully decision-makers.
Greater exposure
20-Feb-2017 Vietnamnet
The RCEP will have the effect of locking in Vietnam - and all the other signatories - and prevent them from modifying or withdrawing investors’ rights they have granted, even if some years later they decide that granting those rights did not contribute to development in the country.
Why are my highly educated friends so ignorant about trade?
16-Feb-2017 Local Futures Blog
Local Futures’ Isabel Marlens discusses why many people know so little about trade issues, and what can be done about it.
India, Canada talk on investment pact, no consensus on dispute mechanism yet
13-Feb-2017 Financial Express
A successful conclusion of FIPA will provide a much-needed cover for Canadian investments in India and vice versa, and is expected to be an important catalyst in translating the announcements into reality.
ConocoPhillips subsidiary, received award of $380 million from ICSID, for Ecuador’s unlawful expropriation
10-Feb-2017 Benchmark Monitor
The Tribunal’s decision on damages sends a clear message that governments cannot expropriate investments without compensation
EU makes big step toward setting investor court as global norm
7-Feb-2017 Politico
Brussels has taken a decisive step toward establishing its contentious new investment court as a standard framework for appeals worldwide.
Time to terminate trade & investment agreements allowing corporations to sue government
3-Feb-2017 Focus
The recent investment arbitral decision against the Philippines in favor of the Belgian corporation should be a wake up call on the dangers posed by free trade and investment agreements.
World court rules Aquino’s 2011 cancellation of Belgian dredging project illegal
3-Feb-2017 Manila Times
Orders PH govt to pay Belgian firm P0.8 billion
Brexit will need new dispute resolution mechanism
3-Feb-2017 Law Gazette
A new mechanism for dispute resolution between the UK and the EU will be needed following Brexit.
Putting human rights and investor obligations first
3-Feb-2017 TNI
We urge all stakeholders involved in the EU-Mexico FTA negotiations to replace the current far-reaching liberalisation and deregulation agenda with an agreement that regulates investment
Report of the Special Rapporteur on the rights of indigenous peoples
1-Feb-2017 OHCHR
The report provides an analysis of the impacts of international investment agreements on the rights of indigenous peoples.
Theresa May’s Brexit plan will leave Britain subject to secret global trade courts
31-Jan-2017 Buzzfeed
Experts say that to agree trade deals outside the EU, the UK will have to sign up to an “unaccountable” legal system that can force states to overturn laws corporations don’t like.
Brazil’s bilateral investment treaties: More than a new investment treaty model?
30-Jan-2017 Columbia FDI Perspectives
Brazil has finally become a player in the international investment regime, but it represents a peculiar case in foreign investment relations.
Air Canada appeals to World Bank over Venezuela funds
28-Jan-2017 Ch-aviation
Air Canada registered a case with the International Centre for Settlement of Investment Disputes to recover USD35 million in blocked funds.
Environmentalists earn TPP victory as wins will be rare under Trump
26-Jan-2017 Observer
The TransCanada lawsuit became virtually meaningless as Trump signed an executive order to continue construction of the Keystone XL
Comment: Selling the proposal for a multilateral investment court to the world
24-Jan-2017 Borderlex
In reality, the EU’s plans are not realistic in the current international context, nor will they appease ISDS critics