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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.

Edgewater responds to Galician Government statements concerning its mining concessions at the Corcoesto Gold Project, Spain
27-Oct-2015 Market Wired
Edgewater and Corcoesto intend to exercise all available remedies to protect the rights and the interests of their shareholders, including international arbitration.
Lawyer claims part of new trade deal ‘creates an alternative court system’
26-Oct-2015 East Anglia Daily Times
Parts of a controversial new trade deal being negotiated between the European Union and the United States are illegal, it has been claimed.
TPP sets limit on corporate suits
23-Oct-2015 The Japan News
The Trans-Pacific Partnership free trade pact limits the period for foreign companies to file damages lawsuits against host states over sudden regulatory changes to 3½ years
NAFTA panel could rule on investor-state challenge targeting Ontario this month
22-Oct-2015 Rabble
Billionaire T. Boone Pickens is suing Canada through the North American Free Trade Agreement (NAFTA) for $700 million in future lost profit.
Lessons from NAFTA for the TPP
21-Oct-2015 SUNS
There are many lessons from the North American Free Trade Agreement (NAFTA) that are relevant to the current debate over the Trans-Pacific Partnership (TPP).
EU Parliament adopts robust mechanism needed for Paris climate talks. Are European national leaders ready to act?
19-Oct-2015 EurActiv
EU Parliament adopts robust mechanism needed for Paris climate talks. Are European national leaders ready to act?
RCEP - draft chapter on investment (Oct 2015)
17-Oct-2015 RCEP Legal
As leaked on RCEP Legal
Legendary Texas oil tycoon T. Boone Pickens is suing Ontario for $700 million over wind power
16-Oct-2015 Financial Post
Pickens is using his rights under the North American Free Trade Agreement to bring claims against the Canadian province of Ontario.
Trading away land rights
15-Oct-2015 Triple Crisis
TPP, investment agreements, and the governance of land
East African states agree on free trade area issues
13-Oct-2015 All Africa
The East African Community partner states have agreed on the outstanding trade issues under the Tripartite Free Trade Area (TFTA).
Public services under attack through TTIP and CETA
12-Oct-2015 CEO
EU trade deals with Canada and the US could endanger citizens’ rights to basic services like water and health, as negotiators are doing the work of some of the EU’s most powerful corporate lobby groups in pushing an aggressive market opening agenda in the public sector.
Canada has an ISDS clause with the US. It has faced 35 challenges. Is this Australia’s future?
9-Oct-2015 The Conversation
Up until now, Australia has never agreed to provide American investors with access to Investor-State Dispute Settlement (ISDS), whereas Canada has. In total Canada has faced 35 challenges. Australia has been subjected to only one case.
Legal experts weigh in on TPP
9-Oct-2015 Australasian Lawyer
Law firms are among the many Australian businesses likely to benefit from the Trans-Pacific Partnership.
India-EU FTA: time for a fundamental rethink?
7-Oct-2015 Madhyam
India and EU would soon resume negotiations on the stalled India-EU free trade agreement.
ISDS: courting foreign investors
7-Oct-2015 S2B
Why the Commission’s proposal for an “Investment Court System” still fails to address the key problems of foreign investors’ privileges
EU ratification process of FTA with South Korea done and dusted
7-Oct-2015 Vieuws
The European Commission intends to announce in mid October its plans to revise the deal in order to add the missing investment protection chapter to it.
TPP deal includes tobacco carveout, teeing up fight with congress
7-Oct-2015 Global Trade Online
Trans-Pacific Partnership (TPP) countries have agreed on language that will allow members to exclude tobacco control measures from the scope of investor-state dispute settlement.
Yukos: the saga continues
6-Oct-2015 The Global Legal Post
The bankruptcy of oil and gas giant Yukos led to multiple proceedings against the Russian state and some enormous awards.
TPP carve out for tobacco shows core flaws in investor-state dispute settlement (ISDS)
2-Oct-2015 Info Justice
The new exception validates, rather than assuages, the concerns of those who have been criticizing ISDS systems for many years. Without express carve outs, ISDS provisions do threaten common health and safety regulations.
Foreign direct investment, investment agreements and economic development: myths and realities
2-Oct-2015 South Centre
Foreign direct investment (FDI) is one of the most ambiguous and the least understood concepts in international economics. Common debate on FDI is confounded by several myths regarding its nature and impact.