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.
3-Feb-2016
DRB
The German Magistrates Association rejects the proposal of the European Commission to establish an investment court within the framework of the Transatlantic Trade and Investment Partnership.
3-Feb-2016
The Independent
Other infamous examples of ISDS include Philip Morris, the tobacco giant, suing the Australian government for introducing plain cigarette packaging
1-Feb-2016
The Globe and Mail
Despite Canada’s 14 new free-trade deals, Canada posted record trade deficits and shrinking exports throughout 2015 as prices for tangible commodities fell.
1-Feb-2016
Mining
Eligible Canadian investors with property confiscated by the government of Kazakhstan are now legally entitled to international arbitration under the Canada/USSR BIT.
29-Jan-2016
Lawyer Herald
Pan-Arab TV Network Al-Jazeera is taking legal actions against Egypt over the closure of the Qatar-owned broadcast network and the harassments of its journalists has led to $150 million worth of losses.
28-Jan-2016
The Baltic Course
France’s Veolia, which owns district heat supply companies in Lithuania, filed a suit worth a preliminary 100 million euros against Lithuania.
26-Jan-2016
Reuters
An international arbitrator threw out claims from two investors protesting against Spain’s 2010 cuts to renewable energy subsidies, setting a potential precedent for other lawsuits pending.
26-Jan-2016
Tele Sur
The ruling from the District Court of the Hague in favor of U.S. oil giant Chevron effectively exonerated the company from any responsibility for remediating the contamination in the Amazon.
22-Jan-2016
CBC
Both sides admit surprise as deal risks losing ratification vote thanks to anti-American sentiment.
21-Jan-2016
Lexology
India’s new model BIT text follows the trend of divergent approaches to investment treaty-making by focusing on a more defensive-minded strategy than in its prior treaties.
21-Jan-2016
Tele Sur
Experts from UNASUR met in the Uruguayan capital Montevideo in order to finalize and sign agreements regarding the proposed center for investigation of international settlement dispute cases.
21-Jan-2016
Tico Times
Infinito announced that it has secured funding from a lender to continue pursuing damages stemming from Costa Rica’s cancellation of the firm’s gold mining concession in 2011.
21-Jan-2016
Embassy
CETA, China, softwood lumber among government’s top trade priorities for 2016. Canada’s government is willing to address ISDS concerns.
14-Jan-2016
TNI
Letter from civil society organizations in Myanmar to EC Commissioner Malmström.
14-Jan-2016
The Hindu
Canada asks officials to focus on TPP ratification instead; wants India to first ink bilateral investment pact.
14-Jan-2016
Market Watch
The problem of TPP is with the “investment” chapter, which severely constrains environmental, health, and safety regulation, and even financial regulations with significant macroeconomic impacts.
13-Jan-2016
El Universo
President Rafael Correa announced that Ecuador has reached a payment plan with the US oil company, Occidental (Oxy)
13-Jan-2016
SSRN
The beneficiaries of ISDS have overwhelmingly been companies with more than USD1 billion in annual revenue and individuals with more than USD100 million in net wealth.
12-Jan-2016
Seeking Alpha
Ecuador paid $100M on Dec. 21; will pay another $100M on Jan. 15; $100M on Jan. 31; $200M on Feb. 29; $300M on March 31; and the remainder on April 29.
11-Jan-2016
Bloomberg
Karuturi Global Ltd., one of the largest investors in Ethiopia’s farm industry, is challenging the termination of its project, claiming the government broke the terms of its agreement with the company.
