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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.

Trans-Pacific Partnership investment chapter: maintaining important protections for U.S. investors overseas
19-Nov-2015 The National Law Review
The final text of the TPP’s Investment Chapter remains broadly consistent with other U.S. investment agreements and includes some important new language that is consistent with the U.S. Model BIT issued by the U.S. State Department
EU Trade Insight: Schulz and Lange push for inclusion of ICS in CETA – in brief
18-Nov-2015 Vieuws
European Parliament President, Martin Schulz and Chair of the EP’s International Trade Committee, Bernd Lange said they wanted the Investment Court System (ICS) to be also part of the EU free trade agreement with Canada, known as CETA.
Next generation treaty
18-Nov-2015 The Indian Express
India’s new model BIT makes it clear that its goal is to accomplish more than investor protection.
What a new NAFTA complaint can tell us about the TPP
16-Nov-2015 AFL-CIO
A coalition of U.S. and Mexican labor and civil society groups are taking an unprecedented legal approach to protect workers’ rights that will test the strength of labor protections in international trade agreements.
A first glance at the Investment Chapter of the TPP agreement: a familar US-style structure with a few novel twists
16-Nov-2015 IA Reporter
In broad terms, the agreement’s investment chapter looks familiar – particularly in relation to other recent U.S. investment treaties and FTAs.
The great ISDS & TTIP quiz
12-Nov-2015 TNI
SOMO and TNI launch a new a quiz on ISDS & TTIP. The quiz is intended to increase everyone’s critical knowledge of ISDS and TTIP.
EU-US FTA (TTIP) - draft investment chapter (EU proposal, Nov 2015)
12-Nov-2015 European Commission
As published by the European Commission
TPP’s clauses that let Australia be sued are weapons of legal destruction, says lawyer
11-Nov-2015 The Guardian
Leading arbitration lawyer says there are critical loopholes in the Trans-Pacific Partnership’s investment chapter that leave Australia wide open
UAE firms sue India, desi co for Rs 5 lakh cr over Mumbai plots
7-Nov-2015 Times of India
Two UAE firms are claiming Rs 5 lakh crore ($85billion) as compensation, perhaps the highest arbitration demand in India’s history.
Secret TPP text unveiled: it’s worse than we thought
6-Nov-2015 Public Citizen
Long-awaited text reveals gaps between Administration claims and actual TPP terms on key public concerns
TPP text shows some impacts from community campaigns, but still favours corporate rights over citizens and communities
5-Nov-2015 AFTINET
Preliminary analysis of the thousands of pages of the main chapters of the TPP text show there are still devils in the detail on medicine monopolies, investor rights to sue governments and copyright monopolies.
Despite assurances to contrary, intellectual property covered asset for TPP ISDS mechanism
5-Nov-2015 KEI
Despite assurances from the contrary by Australia and USTR, intellectual property is a covered asset subject to Investor State Dispute Settlement
Dissents matter
4-Nov-2015 Todd N. Tucker
Ecuador has been partially relieved of its debt to Occidental, which constitutes a pretty legalistic and conservative application of property rights by a state appointee dissenter.
The rise in arbitration claims filed by renewable energy investors under the Energy Charter Treaty
4-Nov-2015 Lexology
The number of claims filed by renewable energy investors under the Energy Charter Treaty (ECT) has risen significantly.
Japan releases TPP details – Vietnam to abolish tariffs and economic needs test
3-Nov-2015 Lexology
Besides abolishing tariffs and providing for investor-state dispute settlement, some of Vietnam’s highlights under the Trans-Pacific Partnership free trade pact include removing the dreaded economic needs test
Ecuador-Occidental arbitration award reduced to $1 bln
3-Nov-2015 Reuters
A World Bank tribunal reduced to about $1 billion the amount Ecuador must pay Occidental Petroleum Corp in compensation for seizing the U.S.-based company’s assets
Ecuador says talking to Occidental to resolve oil assets seizure
2-Nov-2015 Reuters
Ecuador is in talks with Occidental Petroleum Corp to seek an agreement over a roughly $1.77 billion award the Andean country was ordered to pay for seizing the U.S.-based company’s assets in 2006
Privacy and ISDS after Safe Harbour invalidation: Singapore FTA
2-Nov-2015 Vrijschrift Blog
The Court of Justice of the EU should assess whether the trade agreement with Singapore is compatible with the EU Treaties and Charter of fundamental rights before it enters into force.
New Zealand open to ditching old ISDS model under NZ - EU trade deal
30-Oct-2015 NZ Herald
New Zealand has an open mind about replacing traditional investor-state dispute settlement (ISDS) with a new international court-based system proposed by the European Union.
U.S. wary of EU proposal for investment court in trade pact
30-Oct-2015 Reuters
The United States is wary of a European Union proposal for a new court system to settle investment disputes as part of the world’s biggest free-trade agreement