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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.

World Bank tribunal rules against Canadian miner in legal dispute with Colombia
10-Jun-2024 Mining.com
The World Bank’s ICSID ruled in favour of Colombia in a feud with Canada’s Montauk Metals after finding that the mining ban imposed by the Gustavo Petro administration on the Santurbán moor does not violate the Canada-Colombia Free Trade Agreement signed in 2008.
Secretive court system has awarded over $100bn public money to corporations, finds new analysis
6-Jun-2024 The Guardian
More than $100bn of public money has been awarded to private investors in investor-state dispute settlement (ISDS) courts, according to the most comprehensive analysis yet.
An international law framework for climate-aligned investment governance
3-Jun-2024 CCSI
International Investment and Trade Law should be reformed for climate-aligned investment governance.
New Sierra Club report: Trading away our climate exposes how trade pacts undermine climate action
3-Jun-2024 Sierra Club
Report urges elimination of ISDS Provisions, calls for stronger trade policies to protect climate.
Historic victory: Council gives green light for EU withdrawal from climate-wrecking Energy Charter Treaty
31-May-2024 CAN Europe
The Council of the EU adopted a historic decision to withdraw the European Union from the Energy Charter Treaty, an international investment treaty from the 1990s increasingly used by the fossil fuel industry to sue governments over their climate and energy policies.
Mozambique: ETG threatens international arbitration as ‘pigeon pea saga’ drags on
31-May-2024 Club of Mozambique
African commodities house ETG has warned Mozambique that it will seek international arbitration in a dispute over the seizure of up to US$60 million’s worth of goods.
Berkeley seeks $1 bln in damages from Spain over uranium mine dispute
29-May-2024 Reuters
Australian mining group Berkeley Energia filed a request for an arbitration to seek $1 billion in damages from the Spanish government after it refused to give final approval for its uranium mine project.
Uruguayan State requested hefty sum in damages over Montevideo Port deals
27-May-2024 MercoPress
Chilean and Canadian partners of the Montecon consortium handling operations in the port of Montevideo have started an arbitration process for “damages and losses” worth up to US$ 600 million against the Uruguayan State.
Eurohold and EIG launch EUR 500 mln arbitration proceedings against Romania
27-May-2024 Romania-Insider
Eurohold Bulgaria AD and Euroins Insurance Group AD said they have officially filed a request for arbitration against the government of Romania at the International Centre for Settlement of Investment Disputes in Washington, DC.
Government wins landmark international arbitration case against Laiki, Bank of Cyprus depositors
23-May-2024 In-Cyprus
The World Bank’s International Centre for Settlement of Investment Disputes (ICSID) tribunal unanimously rejected a USD 600 million claim by depositors and bondholders of Laiki Bank and the Bank of Cyprus.
ICSID rules in favour of Peru in decade-long dispute with Kaloti Metals
20-May-2024 Mining.com
The International Centre for Settlement of Investment Disputes (ICSID) ruled in favour of Peru in a decade-long dispute with gold dealer Kaloti Metals & Logistics, LLC.
Non-European Union states keen on investment agreements with India
10-May-2024 Hindustan Times
Several non-European Union states are keen on finalising bilateral investment treaties with India to boost the potential for investments and to address concerns of investors on matters such as dispute resolution.
How the fast-track law could expose future NZ governments to expensive trade disputes
10-May-2024 The Conversation
Foreign investors wanting to protect their gains under the controversial new law could hold the country to ransom by threatening a dispute. As a result, they would constrain New Zealand’s democratic ability to exercise its sovereignty, and to protect te Tiriti rights.
The tide is turning against the global court for corporations – ISDS
8-May-2024 PSI
After a decade long struggle by PSI and affiliates against trade rules that put corporate profits before people, victory is in sight!
The global laws that help corporations block climate action
6-May-2024 Jacobin
Companies have long used international treaties to try to prevent Global South countries from asserting economic sovereignty. In recent decades, corporations have used such laws to stymie European governments’ attempts to tackle the climate crisis.
Victories in the global movement against corporate globalization
3-May-2024 Public Citizen
For half a century, the ISDS system has allowed multinational corporations to run off with billions of taxpayers dollars while allowing them to undermine environmental standards, public health protections, financial regulations, and other sound policies throughout the world.
Peru seeks to avoid arbitration over Chinese-built mega port
30-Apr-2024 Reuters
A free-trade agreement between Peru and China, which has been in effect since 2009, protects investments and has allowed increased trade between the countries.
Why people of Ecuador were right to keep the corporate courts out
29-Apr-2024 Common Dreams
In a referendum, Ecuador voted to keep its constitutional ban on using international arbitration and investor-state dispute settlement mechanisms.
As Honduras leaves World Bank dispute forum, US tries to keep influence
26-Apr-2024 El Faro
Honduras’ withdrawal from the World Bank investor dispute forum could have a limited practical effect, but it is already read along ideological lines.
Major victory as the European Parliament votes overwhelmingly in favour of exiting the climate-wrecking Energy Charter Treaty
25-Apr-2024 CAN Europe
The European Parliament voted today largely in favour of the Commission’s proposal for the European Union to withdraw from the Energy Charter Treaty, a landmark move that campaigners across Europe have been demanding for years.