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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.

EU Parliament ICS opinion ignores legal pitfalls
7-Sep-2016 Client Earth
Highly controversial investor rules in the EU-Canada free trade agreement (CETA) led the EU Parliament to ask its legal service whether they were compatible with EU law, and the analysis has just been published.
Six lawsuits filed against Crimea transfer to Russian jurisdiction by Ukrainian companies
6-Sep-2016 TASS
There are six lawsuits filed by the Ukrainian companies - Privatbank, Ukrnafta, Belbek Airport, Stabil, Everest Estate and Oshchadbank.
Iran signs off on a radical investment treaty: barring arbitrators from wearing two hats, narrowing protections, and limiting damages awards
5-Sep-2016 IA Reporter
The Islamic Republic of Iran and the Slovak Republic have signed off on a deeply iconoclastic investment treaty.
"Let’s make them poorer, and we’ll get rich"
1-Sep-2016 BuzzFeed
Financial companies have figured out how to turn a controversial global legal system to their own very profitable advantage.
The billion dollar ultimatum
31-Aug-2016 BuzzFeed
International corporations that want to intimidate countries have access to a private legal system designed just for them. And to unlock its power, sometimes all it takes is a threat.
The court that rules the world
30-Aug-2016 BuzzFeed
A parallel legal universe, open only to corporations and largely invisible to everyone else, helps executives convicted of crimes escape punishment.
NGOs warn against dispute mechanism in Asian free-trade pact
30-Aug-2016 The Nation
Activists of various NGOs have urged Asean governments to eliminate investor-state dispute settlement (ISDS) from the Regional Comprehensive Economic Partnership (RCEP) draft.
Venezuela ordered to pay Canadian miner Rusoro more than $ 1.2 billion
29-Aug-2016 Toronto Star
An international arbitration tribunal has ordered Venezuela to pay a Vancouver-based mining company more than $1.2 billion for expropriating its gold mines.
International arbitration structure skewed in favour of developed nations
29-Aug-2016 Silicon India
Developing countries, including India, should build capacity instead of playing the victim as the structure of international arbitration was heavily biased towards the developed countries, a top Finance Ministry official said.
India, US to try narrow differences in BIT
26-Aug-2016 Deccan Herald
India and United States will try to narrow differences on a proposed Bilateral Investment Treaty (BIT) next week, although an early breakthrough seems unlikely.
Bilateral investment pacts haven’t worked
25-Aug-2016 The Hindu Businessline
Reform of the international investment agreement regime has swept many countries, including Australia, South Africa, Indonesia, India and the EU, writes the Secretary-General of CUTS. What are the reasons for the growing scepticism? What lies ahead?
TDM 3 (2016) - Three Centuries of Arbitration for Peace
23-Aug-2016 TDM
The papers from this "Three Centuries of Arbitration for Peace" TDM/SCC Special are runner-up submissions of the writing competition initiated by the Arbitration Institute of the Stockholm Chamber of Commerce (SCC).
Bilateral investment treaty negotiations between India and US: Problems and prospects
21-Aug-2016 IRA
Outline of the differences between two countries’ model BITs as they seek to negotiate an agreement.
EU members unsure how to apply CETA, 2 months from signing
20-Aug-2016 CBC
Leaked meeting notes posted earlier this month by ’Politico Europe’ suggest that as recently as July 15, countries couldn’t agree on what parts of the agreement should apply when.
An international arbitration system for BRICS - is it an imperative for further economic cooperation
19-Aug-2016 Lexology
The BRICS countries are discussing what kind of arbitration system is needed to settle commercial and investment disputes between them.
Glencore begins arbitration against Bolivia over mine nationalization
17-Aug-2016 Daily Business Review
Glencore International has notified Bolivia that it has begun arbitration proceedings over its investments in two smelters and a tin mine nationalized between 2007 and 2012.
Three more reasons why we need to stop CETA
16-Aug-2016 Common Dreams
A major topic of discussion at the World Social Forum in Montreal was the problems with TTIP-style free trade agreements and how we can stop them, writes Nick Dearden
RCEP - draft investment text: India (based on negotiating draft of Oct 2015)
16-Aug-2016
RCEP - draft investment text: NZ (based on negotiating draft of Oct 2015)
16-Aug-2016 RCEP Legal
RCEP - draft investment text: Korea (based on negotiating draft of Oct 2015)
16-Aug-2016 RCEP Legal