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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.

Argentina is back in the BIT negotiation arena
21-Dec-2016 Investment Claims
The recent signature of the Argentina-Qatar Bilateral Investment Treaty (BIT) and the imminent signature of an Argentina-Japan BIT represent a shift in Argentina’s BIT policy.
When you thought trade deals could not get any worse — enter Wall Street
19-Dec-2016 Sierra Club
What connects two proposed gold mines, one in the high-altitude wetlands of Colombia and one in the Carpathian Mountains of Romania?
Brexit and foreign investors’ legitimate expectations
19-Dec-2016 Kluwer Arbitration Blog
Might Brexit trigger foreign investor claims against the United Kingdom?
The hidden costs of RCEP and corporate trade deals in Asia
16-Dec-2016 Friends of the Earth International
RCEP also includes the controversial Investor-State Dispute Settlement mechanism (ISDS), which is facing increasing public criticism and scrutiny worldwide.
Pakistan favours multilateral dispute resolution
16-Dec-2016 The News
Pakistan favours the resolution of trade disputes through established multilateral settlement systems instead of ad-hoc tribunals, an official said.
Winning arbitration case
15-Dec-2016 Jakarta Post
The Indonesian government should stick to its policy of removing the investor-state dispute-settlement (ISDS) mechanism from its bilateral investment or trade treaties.
Venezuela ordered to pay steelmaker Tenaris $162 million for takeover
15-Dec-2016 Reuters
A World Bank tribunal ordered Venezuela to pay steelmaker Tenaris SA $162 million for expropriating two investments in the country
EU, Canada to launch investor protection court proposal
15-Dec-2016 Bloomberg
The European Union and Canada will launch a proposal for a new global investment court system for settlements of disputes between states and foreign investors over discriminatory treatment.
Don’t cry over dead trade agreements
14-Dec-2016 Live Mint
If we can manage our own economies well, new trade pacts will become largely redundant.
Eco Oro files request for arbitration against Colombia
12-Dec-2016 Investing News Network
The claim relates to Eco Oro’s dispute with Colombia in relation to State measures that have destroyed the value of its investments in the Colombian mining sector.
German utilities win compensation for nuclear phaseout
8-Dec-2016 DW
Germany’s highest court has ruled in favor of three power companies in a dispute over a government decision to phase out nuclear energy. Vattenfall is also suing at the International Center for Settlement of Investment Disputes (ICSID).
Multinationals launch 50 lawsuits worth $31b against Asian nations
8-Dec-2016 ABC News
A new report finds that corporations have launched 50 lawsuits, worth at least $US31 billion, using secret international arbitration tribunals against 11 countries in the Asian region.
Churchill Mining’s $1bn claim against Indonesia struck off
7-Dec-2016 Digital Look
A tribunal has struck out a claim by Churchill Mining for damages after Indonesia’s government revoked its licence for a coal project.
India and Brazil conclude negotiations of Bilateral Investment Treaty
7-Dec-2016 Lexology
The conclusion of negotiations between India and Brazil culminating in a near-final treaty between the two nations.
Scrapping TPP won’t make a lick of difference
6-Dec-2016 ABC
The problem with free trade deals is they rarely are about trade. In fact, trade usually is a side issue. And the TPP was a classic case in point.
EU closes in on TTIP-style deal with Japan
6-Dec-2016 Newstalk
Officials in Brussels have announced that they are close to securing a free trade agreement with Japan.
EU, RI look to negotiate CEPA points
1-Dec-2016 Jakarta Post
Indonesia will seek a win-win outcome for the Comprehensive Economic Partnership Agreement (CEPA) with the European Union, having exchanged views on a number of crucial sticking points ahead of the next round of negotiations in January.
Les Wallons ont-ils été grugés sur le Ceta et par qui?
30-Nov-2016 La Libre
La crise du mois d’octobre dernier était peut-être inutile.
EU Executive to step up efforts to set up international investment dispute settlement system
30-Nov-2016 Vieuws
The European Commission wants to give a strong push within the EU and around the globe for the establishment of a multilateral investment dispute settlement system.
EU asks India not to scrap bilateral investment treaties with member states
29-Nov-2016 Business Standard
The EU terms India’s move ’unilateral’, says lack of investor protection might stop European investments to India.