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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.

Oil giants punish Venezuela through Dutch treaty
8-Jan-2016 Eurasia Review
Venezuela doesn’t want investment treaties anymore if they give investors the right to drag the country before a commercial court. “The system has been set up to break down the nation-state.”
Libre-échange contre climat : la plainte de TransCanada contre l’État fédéral américain confirme les craintes des mouvements citoyens
7-Jan-2016 Collectif Stop Tafta
La cohabitation entre le régime international de commerce et d’investissement actuel et l’ambition prétendue de lutter contre le changement climatique est impossible.
Keystone XL rejection leads TransCanada to sue Obama administration
7-Jan-2016 CBC
Calgary-based company alleges U.S. president exceeded his constitutional powers
RCEP: India to propose mechanism to resolve non-tariff measures
6-Jan-2016 Financial Express
India is set to propose a non-legal and non-adversarial mechanism to resolve trade-impeding non-tariff measures among the 16 Regional Comprehensive Economic Partnership (RCEP) countries.
Will the TPP set back this campaign to stop a proposed coal mine on Montana tribal land?
6-Jan-2016 Yes
The TPP makes the rights of companies sacrosanct, and that includes the right to mine. But what about the rights of people who live in the way of proposed mining sites?
ANALYSIS: In final version of its new model investment treaty, India dials back ambition of earlier proposals – but still favors some big changes
6-Jan-2016 IA Reporter
Following the release in April of 2015 of a draft model investment treaty, the government of India unveiled a final version of its proposed negotiating text.
Australia tobacco clash reverberates in EU trade talks
4-Jan-2016 Politico
The inclusion of an ISDS in an EU agreement could raise the likelihood of such cases being brought against all kinds of public interest and health protecting policies in the future.
Resolute Forest Products sues for $70M over Port Hawkesbury aid
31-Dec-2015 CBC
NAFTA action comes after closure of Laurentide mill blamed on Nova Scotian mill.
Foreign Direct Investment: myths and realities
30-Dec-2015 IPS
There is no clear evidence that bilateral investment treaties have a strong impact on the direction of FDI inflows.
American mining giant escaped Indonesian law with ISDS
30-Dec-2015 IPS
American mining corporation Newmont escaped the domestic processing requirement from Indonesia’s 2009 Mining Law. It achieved this by using a clause in a Dutch investment treaty.
French firm attacks Ugandan tax using ISDS
29-Dec-2015 Inter-Press Service
The heavily criticized legal mechanism, known as ISDS, is an important tool for European companies to pressurize developing countries. This year Uganda joins the rank of developing nations asking themselves: “Why have we ever signed this?”
American mining giant escaped Indonesian law with ISDS
29-Dec-2015 http://www.ipsnews.net/2015/12/amer...
American mining corporation Newmont escaped the domestic processing requirement from Indonesia’s 2009 Mining Law. It achieved this by using a clause in a Dutch investment treaty.
TWN: Common claims about TPPA investment chapter, ISDS – a rebuttal
22-Dec-2015 Aliran
Claims of the much-touted supposed ‘benefits’ of the investor-state dispute settlement mechanism are not really what they seem.
The dismissal of a case against plain cigarette packaging is good news for taxpayers
21-Dec-2015 The Age
I only wish to caution that we should be wary of anyone who suggests that the decision demonstrates that ISDS isn’t problematic.
Land deals and investment treaties
18-Dec-2015 IIED
The vast majority of the land deals from the recent wave of agribusiness investments in low and middle-income countries are protected by at least one investment treaty.
Philip Morris loses case against Australia’s tobacco plain packaging law
18-Dec-2015 The Australian Financial Review
Cigarette company Philip Morris has suffered another defeat in its long-running bid to overturn Australia’s plain packaging laws.
Govt approves revised BIT model, excludes tax matters
17-Dec-2015 The Economic Times
The Cabinet approved the revised model text for the Bilateral Investment Treaty.
Canadian companies behaving badly
11-Dec-2015 Now
Mining sins in poor countries are likely to get worse under Trans-Pacific Partnership.
Move to renewables jeopardized by EU corporate trade deals
10-Dec-2015 TNI
Proposed special rights for corporations in EU trade agreements threaten to prevent the necessary energy transition to tackle climate change according to a new report.
Canada warns EU trade deal could unravel if talks reopened
10-Dec-2015 Reuters
Canada is open to rethinking the contentious issue of investor protection in its free trade accord with the European Union but warns that EU demands for change risk unraveling the entire deal.