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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.

Romania’s government agrees to a complete lack of transparency in the Rosia Montana arbitration case
7-Oct-2016 Save Roșia Montană
In disregard with official requests, Romania’s government and Gabriel Resources decided to play out their dispute behind closed doors.
Romania to terminate its intra-EU Bilateral Investment Treaties
3-Oct-2016 Lexology
The President of Romania agreed to submit to the Romanian Parliament draft legislation approving termination of 22 bilateral investment treaties that Romania concluded with other EU Member States.
Is toxic trade in your backyard?
3-Oct-2016 Sierra Club
Looming trade deals threaten efforts to keep fossil fuels in the ground
Commission boosts infringement procedures against five countries
30-Sep-2016 Politico
The European Commission today ramped up infringement procedures against Austria, the Netherlands, Romania, Slovakia and Sweden to push them toward scraping their bilateral investment treaties with other EU nations.
Canada’s civil society calls for Chevron’s assets to be frozen so Ecuador judgment can be paid
30-Sep-2016 Friends of the Earth Canada
Some of Canada’s largest environmental, labor and civil society organizations have now joined the growing international community demanding that Chevron clean up its toxic waste in the Ecuadorian Amazon.
Case between Ecuadoreans, Chevron heading to Ontario court
29-Sep-2016 The Globe and Mail
The latest salvo in a marathon multibillion-dollar legal battle between global energy giant Chevron Corp. and a group of Ecuadorean residents over environmental damage has begun in a Toronto court.
Morocco ratifies 3 bilateral investment treaties
29-Sep-2016 I-ARB Africa
This surge in the ratification of “Intra-African” BITs is part of the Moroccan “South-South Partnership” strategy
Mitigating political risk: Treaty protections versus political risk insurance
28-Sep-2016 Lexicology
A discussion of some general distinctions between invesment treaty protections and political risk insurance.
India to operationalize BIPA with Canada
28-Sep-2016 Live Mint
On Canada’s insistance, India is expected to sign a bilateral investment treaty (BIT) with Canada based on an old text, not its new model BIT. The old text contains contentious provisions such as the investor-state dispute settlement mechanism.
Unpacking CETA
28-Sep-2016 Global Labour Column
For decades, labour has been fighting purely defensive battles against the neo-liberal trade and investment agenda; we lack an agenda of our own. Lost ground will not be reclaimed on what is fundamentally hostile territory, argues Peter Rossmann of the IUF.
The men behind ISDS
27-Sep-2016 Oneworld
The so-called “ISDS” has been existing for years already. A revealing look in the hidden world of investor-state dispute settlement.
CETA - Trading away democracy
23-Sep-2016 TNI
How CETA’s investor protection rules could result in a boom of investor claims against Canada and the EU.
The new rules of the road: a progressive approach to globalization
22-Sep-2016 American Prospect
The new president needs a fresh approach to trade.
Trade deals’ investor state provisions: a sub-criminal conspiracy?
16-Sep-2016 Counterpunch
There is a glaring disconnect in the world between economic growth, and trade and investment agreements.
Council legal service takes stance on provisional application of CETA
14-Sep-2016 Vieuws
As the member states are struggling to agree which parts of CETA should enter into force provisionally, the Council legal service suggests sizeable ‘carve-outs’ in the area of investment protection and financial services.
India stumbles on bilateral treaty talks
14-Sep-2016 Business Standard
Negotiations is slowing down and signing of BITs, with India’s major global partners, is taking more time than previously anticipated
Investment chapters in trade agreements
14-Sep-2016 CADTM
Ecuador in the early 90’s, during the great neoliberal onslaught, had modified and established laws to ensure attractive profits to foreign companies. Additionally, Ecuador subscribed 21 BITs out of a total of 30 signed treaties between 1985 and 2003.
A homegrown disaster
9-Sep-2016 BuzzFeed
A secretive global legal system gives corporations leverage over the countries where they operate. Everyone said the United States didn’t have anything to worry about, because American laws are fair to begin with. Everyone was wrong.
Where is the Regional Comprehensive Economic Partnership headed?
9-Sep-2016 Spicy IP
The latest round of RCEP talks paints a worrisome picture for the global south, given that it will bring 3.5 billion people and 12% of world trade into its fold.
TPP fallout continues
8-Sep-2016 Politico
The list of groups coming out against the TPP as it currently stands continues to get longer.