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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.

New analysis shows ’frivolous’ corporate sovereignty suits increasingly used to deter regulation rather than win compensation
1-Apr-2016 Tech Dirt
Why would investors continue to file these highly costly cases, if the expected success rate is so low?
Investment protection in ASEAN – part 1: the ASEAN Comprehensive Investment Agreement
31-Mar-2016 ASEAN Briefing
The ASEAN Comprehensive Investment Agreement (ACIA) was adopted in 2009 to establish an investment environment based on international best practices.
US and China close in on a bilateral investment treaty
29-Mar-2016 Economy Watch
Chinese officials announced that a US-China bilateral investment treaty (BIT) is close to being signed.
Why developing countries are dumping investment treaties
25-Mar-2016 The Conversation
Bilateral investment treaties have been a source of political controversy in recent years. This is clear from the alarming increase in the number of disputes between investors and governments.
To change a BIT is not enough
22-Mar-2016 Both Ends
On the need to create sound policy frameworks for investment.
Protecting the Santurban páramo from Angostura mining project
18-Mar-2016 AIDA
High-altitude wetlands that provide drinking water to more than two million people could become one of the world’s biggest gold and silver mines.
The gold-plated CETA: whose gold and at what cost?
17-Mar-2016 IISD
Does the agreement reflect 21st century needs and standards?
Navigating governments’ obligations in the context of land investments
17-Mar-2016 Earth Institute
A new report from the Columbia Center on Sustainable Investment explores the dilemmas posed by land investments under international investment treaties and human rights law.
Organisations condemn Eco Oro Minerals’ warning that it could sue Colombia over efforts to protect water sources
16-Mar-2016 CIEL
The Canadian company’s Angostura mining project in the high-altitude wetlands, or páramo, of Santurbán, has announced that it could file an international arbitration suit against Colombia over measures to protect the páramo, which are important sources of water in the country.
Is ISDS in EU trade agreements legal under EU law?
15-Mar-2016 IISD
The legality of investor­­–state dispute settlement (ISDS), including in the form of an Investment Court System (ICS), in EU trade agreements under EU law is a contentious issue among academics and legal experts.
International investment law, development and sovereignty: no harm?
13-Mar-2016 Alternautas
The Oxy II awards subvert the notion of sovereignty: by whom and how a country’s natural resources are used becomes a minor question as long as wealth is maximised.
Latest round of TTIP talks boost momentum
10-Mar-2016 EurActiv
Progress was made in the latest round of TTIP talks, but negotiators have a long way to go if the deal is to be signed before Barack Obama leaves office.
Thousands march against water privatization in Peru as TPP and ICSID ruling looms
10-Mar-2016 Rabble
More than 2,000 people marched in Lima, Peru in opposition to the government’s plan to privatize public water services.
France sees the EU-Canada agreement as a ‘template’ for TTIP
9-Mar-2016 EurActiv
Paris would like to “copy-paste” key passages from the EU-Canada free trade agreement, concluded this week, particularly those relating to the arbitration court that is such a controversial issue in Europe.
A CETA investment court is not the solution
7-Mar-2016 The Globe and Mail
This is one of the problems with this regime of investor rights. It confers enormous discretion on an elite corps of lawyers.
How can governments deal with #ISDS claims?
7-Mar-2016 Todd N. Tucker
A research provides a set of pragmatic tools for governments on the receiving end of legal claims.
S’pore, Iran ink bilateral treaty on investment
4-Mar-2016 Asia One
Singapore has moved quickly to sign an investment treaty with oil-rich Iran to support Singapore firms investing in an economy that is emerging after the recent lifting of global sanctions.
CETA announcement shows it’s possible to fix trade deals
4-Mar-2016 Huffington Post
Corporations can still sue governments over public policy decisions they don’t like but the real lesson from the ISDS reforms, in fact, is that public opposition and political mobilization can change things.
RCEP threatens tax policies in India and other 15 countries
1-Mar-2016 Public Services International
New report shows that trade and investment deals like RCEP will further adversely affect the ability of the government of India to tax corporations effectively and fairly.
The seven sins of the EU investment court
1-Mar-2016 EU Observer
Despite all the talk of reform from commissioner Malmstroem, the threat to democratic decision-making is as alive and dangerous as ever.