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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.

How the treaty signed with China under OBJ got Nigeria’s jets seized, – ex-Presidential aide
26-Aug-2024 Daily Trust
Laolu Akande, former presidential aide, has shed light on the complexities and consequences of Nigeria’s bilateral investment treaty with China, which has led to significant legal challenges for the country.
Fossil fuel companies reap billions from arcane dispute clause
21-Aug-2024 Bloomberg
Fossil fuel companies have claimed billions of dollars from countries through an arcane legal provision that could deter governments from imposing more stringent climate laws.
Russian oligarch launches €15bn lawsuit against Luxembourg
19-Aug-2024 virgule
Mikhail Fridman files international arbitration case against Luxembourg after country froze his assets when he was hit by EU sanctions.
‘Expropriation threat’: Tanzania hit by $1.2 billion damages claim in bitter gas field dispute
9-Aug-2024 Upstream
Toronto-listed Orca Energy has hit Tanzania’s government with a US$1.2 billion claim
State lawmakers urge US exit from toxic ISDS mechanisms in trade deals
6-Aug-2024 Common Dreams
"Outdated trade rules like ISDS can pose a real threat to states’ sustainable energy initiatives and the good-paying jobs they create," said one lawmaker from Maine
Investment treaties are undermining the global energy transition
31-Jul-2024 E3G
Globally, 2 gigatonnes (Gt) of carbon dioxide equivalent (CO2e) of potential annual greenhouse gas emissions is protected via investment treaties.
Tanzania agrees to pay Indiana Resources Sh. 237 Billion over ICSID disputes
29-Jul-2024 The Chanzo
Tanzania and an Australian-based company Indiana Resources Limited have settled for USD 90 million.
APEP should be used to eliminate ISDS, say members of Congress, US and Latin American civil society
23-Jul-2024 Public Citizen
Members of Congress, grassroots activists, and civil society organizations from the US and Latin America urged the United States to use the Americas Partnership for Economic Prosperity (APEP) to undo the damage of decades of corporate-dominated trade policy.
TC Energy loses $15-billion NAFTA lawsuit against US
19-Jul-2024 The Monitor
The welcome decision shines a light on Canada’s flawed defence in similar investor-state case against Canada.
When investors subvert states
18-Jul-2024 The Jordan Times
Imagine a scenario where a private company effectively creates and controls its own jurisdiction within a sovereign country. This company introduces its own currency, enacts laws, and establishes courts, prisons, police forces and even intelligence services.
Why Switzerland is diverging from Europe on a key energy treaty
18-Jul-2024 Swiss Info
The European Union will withdraw from the Energy Charter Treaty, an international agreement that protects investments in coal and oil. But Switzerland is sticking to the agreement which scientists considered incompatible with climate goals.
Court ruling exempts Colombia from compensating Eco Oro Minerals Corp
17-Jul-2024 Prensa Latina
A court exempts Colombia from paying the Canadian Eco Oro Minerals Corp a compensation for the banning of gold exploitation in the northern Santurban wasteland.
Panama’s reckless gamble with foreign investments
17-Jul-2024 bnamericas
Panama faces arbitration claims arising out of recent measures affecting foreign-owned investments in mining and other sectors, which are worth substantially more than half of its GDP.
Costa Rica wins arbitration against Canadian miner Infinito Gold
17-Jul-2024 The Tico Times
Costa Rica announced that the international litigation filed by the Canadian mining company Infinito Gold has ended after Costa Rican Justices closed the gold deposit in 2010 due to environmental impact.
Dismissal of $15 billion NAFTA legacy case on Keystone XL pipeline is welcome, but billions in egregious claims still remain
17-Jul-2024 Public Citizen
The World Bank has dismissed Canadian oil company TC Energy’s $15 billion ISDS case against the US sought due to lack of jurisdiction.
Samir case : Corral Holding awarded only $150 million of claimed $2.7 billion
16-Jul-2024 Yabiladi
The ICSID dismissed most of Corral Morocco Holding’s claims against Morocco, amounting to $2.7 billion, awarding the group $150 million.
Australian legal experts call for swift removal of ISDS
12-Jul-2024 AFTINET
62 Australian lawyers and legal scholars have issued an open letter urging the Australian government to swiftly implement its policy of excluding Investor-State Dispute Settlement provisions from current and future trade and investment agreements.
S. Korea appeals tribunal order to pay $32m to US hedge fund
12-Jul-2024 The Korea Herald
South Korea has filed an appeal against a ruling by a Hague-based arbitration court ordering it to pay $32 million to a US hedge fund to compensate for its intervention in the merger of two Samsung affiliates in 2015.
World Bank arbitration tribunal dismisses Emirati oil firm’s EGP 3 bn case against Egyptian government
9-Jul-2024 Enterprise
The World Bank’s ICSID dismissed claims brought against the Egyptian government by UAE-based CTIP Oil & Gas Investment Limited.
SAMIR oil refinery: Morocco rejects $2.7 billion compensation claim from Saudi firm
9-Jul-2024 Morocco World News
Morocco dismissed the claims, maintaining that the businessman was engaging in blackmail and illegal maneuvers to obstruct the liquidation process of Morocco’s sole oil refinery, Samir.