bilaterals.org logo
bilaterals.org logo

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.

Action: Call on MEPs to firmly reject special rights for foreign investors!
25-May-2015 NO 2 ISDS!
Join this e-action on the European Parliament, asking MEPs to pledge that they will reject ISDS in TTIP. The action is going to run until the vote in the plenary on 10 June and is available in 9 languages.
Korean government criticized for lack of transparency on ISDS suit
25-May-2015 Korea Herald
While the South Korean government is facing its second international arbitration under the investor-state dispute settlement system, civic groups are demanding that the details should be made public as they could cost several billion dollars of taxpayers’ money.
Stopping the corporate power grab — it’s not all just about TTIP
25-May-2015 The Ecologist
In the rush to oppose TTIP we mustn’t lose sight of the context in which the deal is being negotiated — the hundreds of bilateral treaties that give corporations the right to sue in secret ’trade courts’.
Renegotiating the bite of our BITs
18-May-2015 Jakarta Post
Apart from its network of BITs, Indonesia is also a party to a number of multilateral and regional investment agreements such as the ASEAN Comprehensive Investment Agreement which also contain an ISDS clause, including recourse to ICSID arbitration.
Canada just threw a grenade into Elizabeth Warren’s trade fight with Obama
17-May-2015 Huffington Post
Last week, Canadian Finance Minister Joe Oliver gave a speech in New York arguing that the Volcker Rule — a key tenet of the US’ 2010 banking law — violates the North American Free Trade Agreement. This underscores Senator Warren’s warning that such deals, including the Trans-Pacific Partnership that Obama is currently negotiating, jeopardize financial reform.
Reject TPP dispute settlement: ALP
15-May-2015
Labor has called on the federal government to follow the example of the Howard years and oppose the inclusion of a controversial dispute-settlement provision in trade talks with the US.
Singapore breaks new ground as arbitration hub
15-May-2015
The International Centre for Settlement of Investment Disputes hears its first case outside of US, France
First hearing opens over Lone Star asset sell-offs in Korea
15-May-2015
An international tribunal began hearing a multi-billion dollar case Friday that the US private equity firm Lone Star filed against South Korea’s government over tax and other disputes surrounding its asset sell-offs in Korea.
Against the Trans-Pacific Partnership
15-May-2015 Jacobin Magazine
Opponents of the trade deal being secretly negotiated between the United States, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam have moved the discussion beyond its putative impact on jobs and growth and closer to the agreement’s broader ramifications, writes the IUF’s Peter Rossman.
UN blasts EU for backing global deal for ISDS, but not for country bailouts
14-May-2015 EurActiv
Richard Kozul-Wright, director at the United Nations Conference on Trade and Development (UNCTAD), said support for investor-state dispute settlement (ISDS) but not for state-investor was “incongruous”.
Hearing to begin this week in multi-billion-dollar battle between S. Korea, Lone Star
14-May-2015 Yonhap
An international tribunal will begin hearing a multi-billion dollar case this week that the US private equity firm Lone Star filed against South Korea’s government over tax and other disputes surrounding its asset sell-offs in Korea.
Leading scholars, former judges sign letter opposing Investor-State Dispute Settlement
13-May-2015 AFJ
A group of legal and economic luminaries have signed a letter to Congressional leaders urging them to oppose Investor-State Dispute Settlement (ISDS) provisions in proposed trade deals.
Investor-State Dispute Settlement: Review of Developments in 2014
13-May-2015 UNCTAD
According to UNCTAD, 40% of all new ISDS cases in 2014 were initiated against developed countries (the historical average is 28%). A quarter of them are intra-EU disputes.
Stop the suits tour: International investment agreements threaten people and the environment from El Salvador to Canada
12-May-2015 Mining Watch
In anticipation of an imminent ruling from a little-known arbitration tribunal at the World Bank that could force El Salvador to pay Canadian-Australian mining firm OceanaGold US$301 million, a Salvadoran delegation is visiting Canada to discuss how investor-state arbitration threatens democratic decision-making, public health and the environment here and beyond our borders.
US rejects EU calls for global investment court
11-May-2015 Press TV
The United States has rejected a European Union proposal to establish a global investment court aimed at resolving disputes arising from a massive free trade treaty with the US.
Egypt: Collateral costs of investment
11-May-2015 Zawya
Foreign investment is crucial for reviving Egypt’s economy, but a new report reveals it can come at a considerable cost, writes Stefan Weichert
No TTIP deal with ISDS, warns parliament
7-May-2015 The Parliament Magazine
MEPs have threatened to block TTIP if ISDS is included, despite revised plans presented to them by European trade commissioner Cecilia Malmström.
MEPs unimpressed with Commission’s ISDS proposal
7-May-2015 EurActiv
European Trade Commissioner Cecilia Malmström tried to convince MEPs that there are ways to keep the Investment-State Dispute Settlement in the Transatlantic Trade and Investment partnership deal. But unimpressed lawmakers failed to greet it as a full-fledged reform.
South Africa’s revocation of its bilateral investment treaties – analysis
6-May-2015 EurAsia Review
From an international policy point of view, South Africa’s denunciation of BITs is reasonable. It may even be seen as a refreshing retreat from a legal quagmire. But the domestic reality requires wider consideration.
Canada-EU trade deal faces more tinkering
6-May-2015 Macleans
Mission accomplished? Not quite. American negotiations with Europe may trigger more changes to CETA