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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.

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
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