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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.

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
A BIT too late
16-Aug-2016 Financial Express
It is likely that the Antrix case — which could see the Government of India paying $1 billion if it loses — would have had a different outcome had the new model BIT been at issue.
RCEP - draft investment text: China (based on negotiating draft of Oct 2015)
16-Aug-2016 RCEP Legal
Bear Creek Mining Corporation v. Republic of Peru (ICSID Case No. ARB/14/21) – public hearing
15-Aug-2016 ICSID
​A hearing on jurisdiction and the merits in the case will be transmitted live via internet feed from 7-14 September 2016.
No logo - Tobacco regulation
13-Aug-2016 The Economist
Three years ago, the government of Togo received a letter from Philip Morris International outlining how plain packaging would violate binding global and regional agreements.
India writes to Singapore, Japan and South Korea to recast investment deals
11-Aug-2016 Economic Times
India has turned its attention to comprehensive economic partnership agreements with Singapore, Japan and South Korea after having fixed the loopholes in the much-abused investment treaties with Mauritius and Cyprus.
US court rules for Chevron in Ecuador rainforest-damage case
10-Aug-2016 LA Times
Ecuadorean plaintiffs cannot collect a $9-billion judgment in the US against Chevron Corp. for rainforest damage, a federal appeals court ruled Monday.
How the Dutch could derail CETA
9-Aug-2016 New Internationalist
As thousands discuss free trade at the World Social Forum in Montreal, Canada’s experience with NAFTA may offer lessons for the Netherlands, writes Niels Jongerius
Bilateral Investment Treaty model to minimise Cairn Energy type dispute: Nirmala Sitharaman
8-Aug-2016 PTI
The government on Monday said it has framed the model Bilateral Investment Treaty to minimise Cairn Energy type of dispute which has resulted in demand for compensation of $5.6 billion from India.
Glencore begins arbitration over Bolivia assets expropriation
5-Aug-2016 BNamericas
Swiss trader Glencore filed for arbitration against the Bolivian government for the expropriation of its mining and smelting assets, adding to a series of lawsuits against the Andean country.