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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.

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.
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?