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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.

Green NGOs welcome the parliamentary resolution on the free trade agreements
15-Jun-2016 Friends of the Earth Hungary
Environmentalists urge the government to turn to the European Court of Justice on the issue of the planned Investment Court System.
Pebble mine: Canadian mining company threatens to stick U.S. taxpayers with costs of “potentially catastrophic” mining scheme
14-Jun-2016 Huffington Post
Northern Dynasty is prepared to file a claim for “arbitration” under NAFTA, seeking compensation for the failure of the Pebble Mine project to move forward to federal permitting.
Unmasked: Corporate rights in the renewed Mexico-EU FTA
14-Jun-2016 TNI
The EU and Mexico launch negotiations for a ‘modernised’ Free Trade Agreement. A key feature is the investment protection chapter which grants major multinational companies in Mexico and the EU the exclusive right to challenge democratic decisions.
China-led trade agreement shrouded in deeper secrecy
13-Jun-2016 NZ Herald
Secretive negotiations for the China-led Regional Comprehensive Economic Partnership or RCEP began in November 2012. The 13th round is being held at SkyCity in Auckland.
Americanization of the BIT universe
9-Jun-2016 SSRN
Friendship, Commerce and Navigation (FCN) treaties are more than a historical precursor to international investment agreements (IIA) and continue to influence and inspire modern investment treaty design.
Big transatlantic market: yield and bow down
9-Jun-2016 MEDEL
MEDEL’s opinion on the construction of a international investment court for TTIP – proposal of the European Commission.
AngloGold suit against gov’t unnecessary - Ayikoi Otoo
9-Jun-2016 Ghana Web
AngloGold Ashanti’s decision to sue government at the ICSID over security concerns at its Obuasi concession has been described as “surprising” by private legal practitioner and former Attorney General, Ayikoi Otoo.
In Greece, standing against free trade agreements is standing for the planet
9-Jun-2016 TTIP Free Zones Europe
Aristoteli joined a growing movement of local authorities opposed to CETA and TTIP to deny the building of a polluter’s paradise
Coalition may add clause to Japan trade deal that lets foreign companies sue Australia
8-Jun-2016 The Guardian
Provision allows firms to sue in international tribunal if laws introduced or changed that hurt their interests.
Eco-groups join in $ 101M Bilcon quarry fight
8-Jun-2016 The Chronicle Herald
The environmental lobby is going to bat for the federal and provincial governments against international big business in a $101-million argument.
U.S. top court rejects Ecuador challenge to Chevron arbitration award
8-Jun-2016 Reuters
The U.S. Supreme Court let stand a $96 million international arbitration award issued in 2011 in favor of energy company Chevron in a dispute over the development of oil fields in Ecuador.
Canadian junior miner, Colombia in trade dispute over rights at national park
8-Jun-2016 Financial Post
A small Canadian mining company has found itself at the centre of a highly charged dispute over its rights to mine for gold in a Colombian nature reserve.
Labor pledges to review trade deals that let companies sue Australia
8-Jun-2016 The Guardian
ALP says it will try to change three major agreements that allow corporations to sue if they think a government has damaged their interests
Groups urge U.S. Congress to reject TPP over environmental concerns
6-Jun-2016 Reuters
More than 450 groups on Monday called on Congress to reject the Trans-Pacific Partnership (TPP) if it comes up for a vote this fall, saying the trade deal would allow fossil fuel companies to contest U.S. environmental rules in extrajudicial tribunals.
Hedge fund sues Peru for $ 1.6 billion over agrarian bonds
3-Jun-2016 Peru Reports
Gramercy Funds Management has filed a $1.6 billion claim against Peru for its refusal to redeem land bonds from the 1970s agrarian reform.
Copper Mesa Mining Corporation awarded US$24.365 million for expropriation of two mining projects by Ecuador
3-Jun-2016 Market Watch
The Permanent Court of Arbitration awarded the Company damages of US$19,447,498, plus pre- and post-award interest.
UN Treaty on transnational corporations, other business enterprises & human rights: Options for justice
31-May-2016 S2B
This report discusses options for the following aspects of the treaty: access to remedy; enforcement mechanisms; and its relationship with the trade and investment regime.
Centerra Gold delivers notice of arbitration to Kyrgyz Republic Government
31-May-2016 Benziga
Centerra Gold Inc.reports that it has delivered a notice of arbitration to the Kyrgyz Republic Government in connection with certain ongoing disputes relating to the Kumtor mining project.
EU-Mexico trade talks to start June 13, 14
31-May-2016 Politico
The EU and Mexico will kick off its first negotiation round for overhauling their bilateral trade agreement, talks that will include the EU’s new Investment Court System (ICS).
Emails show TPP ’collusion’ between big banks & Obama administration
30-May-2016 Common Dreams
Emails obtained through Freedom of Information Act (FOIA) show U.S. Trade Rep. Michael Froman discussing TPP with Goldman Sachs lobbyists