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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.

Why Switzerland is diverging from Europe on a key energy treaty
18-Jul-2024 Swiss Info
The European Union will withdraw from the Energy Charter Treaty, an international agreement that protects investments in coal and oil. But Switzerland is sticking to the agreement which scientists considered incompatible with climate goals.
Court ruling exempts Colombia from compensating Eco Oro Minerals Corp
17-Jul-2024 Prensa Latina
A court exempts Colombia from paying the Canadian Eco Oro Minerals Corp a compensation for the banning of gold exploitation in the northern Santurban wasteland.
Panama’s reckless gamble with foreign investments
17-Jul-2024 bnamericas
Panama faces arbitration claims arising out of recent measures affecting foreign-owned investments in mining and other sectors, which are worth substantially more than half of its GDP.
Costa Rica wins arbitration against Canadian miner Infinito Gold
17-Jul-2024 The Tico Times
Costa Rica announced that the international litigation filed by the Canadian mining company Infinito Gold has ended after Costa Rican Justices closed the gold deposit in 2010 due to environmental impact.
Dismissal of $15 billion NAFTA legacy case on Keystone XL pipeline is welcome, but billions in egregious claims still remain
17-Jul-2024 Public Citizen
The World Bank has dismissed Canadian oil company TC Energy’s $15 billion ISDS case against the US sought due to lack of jurisdiction.
Samir case : Corral Holding awarded only $150 million of claimed $2.7 billion
16-Jul-2024 Yabiladi
The ICSID dismissed most of Corral Morocco Holding’s claims against Morocco, amounting to $2.7 billion, awarding the group $150 million.
Australian legal experts call for swift removal of ISDS
12-Jul-2024 AFTINET
62 Australian lawyers and legal scholars have issued an open letter urging the Australian government to swiftly implement its policy of excluding Investor-State Dispute Settlement provisions from current and future trade and investment agreements.
S. Korea appeals tribunal order to pay $32m to US hedge fund
12-Jul-2024 The Korea Herald
South Korea has filed an appeal against a ruling by a Hague-based arbitration court ordering it to pay $32 million to a US hedge fund to compensate for its intervention in the merger of two Samsung affiliates in 2015.
World Bank arbitration tribunal dismisses Emirati oil firm’s EGP 3 bn case against Egyptian government
9-Jul-2024 Enterprise
The World Bank’s ICSID dismissed claims brought against the Egyptian government by UAE-based CTIP Oil & Gas Investment Limited.
SAMIR oil refinery: Morocco rejects $2.7 billion compensation claim from Saudi firm
9-Jul-2024 Morocco World News
Morocco dismissed the claims, maintaining that the businessman was engaging in blackmail and illegal maneuvers to obstruct the liquidation process of Morocco’s sole oil refinery, Samir.
Gabriel Resources appeals ICSID ruling on Rosia Montana gold mining project in Romania
9-Jul-2024 Romania-Insider
Canadian company Gabriel Resources filed an appeal against the decision of the Washington Arbitration Court by which Romania won the case in the Roșia Montană gold mining project, requesting its annulment.
US company battles Nicaragua in arbitration tribunal
8-Jul-2024 Havana Times
The US company is appealing under CAFTA (Central American Free Trade Agreement) for the invasion of its property in Jinotega and the destruction of its avocado and other orchards.
Orla Mining files US$400 million arbitration request in Panama
5-Jul-2024 Resource World
Orla Mining Ltd. has filed a request for arbitration against the Government of Panama under the Canada-Panama Free Trade Agreement regarding the cancellation of the Cerro Quema mining concession in late 2023.
EU notifies exit from Energy Charter Treaty and puts an end to intra-EU arbitration proceedings
2-Jul-2024 European Commission
The EU has taken the final step to exit the Energy Charter Treaty; the Union and its Member States have also reached a formal agreement to put an end to the continuation of intra-EU arbitration proceedings under the ECT.
Infinito Gold withdraws Crucitas mining claim against Costa Rica
1-Jul-2024 The Tico Times
The Canadian mining company Infinito Gold has decided to drop a claim against Costa Rica for the failed Crucitas project in Cutris de San Carlos.
Armenian government faces $1.2 billion lawsuit from foreign investor
1-Jul-2024 Azatutyun
A Cyprus-registered shell company that owns a minority stake in Armenia’s largest mining enterprise has filed a $1.2 billion lawsuit against the Armenian government.
China’s Ganfeng files arbitration against Mexico over lithium deposit
25-Jun-2024 Reuters
China’s Ganfeng and two of its units aiming to develop a lithium project in Mexico registered an arbitration case against the Mexican government over the mining concession.
Oil giant MOL initiates arbitration process against Croatian state
24-Jun-2024 Hungary Today
MOL has filed a new arbitration case with the International Centre for Settlement of Investment Disputes against the Croatian state.
The India-EFTA deal: A model for developing countries
21-Jun-2024 South Centre
Governments are shifting from investor-state dispute mechanisms to treaties that encourage and ease investment.
How investment treaties undermine the voices of local communities
20-Jun-2024 Erasmus Magazine
Dispute settlements in international investment law protect the rights of companies. However, they suppress the voice of local communities, as Stephanie Triefus found in her PhD research.