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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.

Occidental drops a claim but may strengthen suit vs government
10-Oct-2006 Easy Bourse
US-based Occidental Petroleum Corporation (OXY) has dropped a compensation claim against Ecuador’s state oil company Petroecuador in a move that analysts said may strengthen the oil firm’s case against the government.
IP rights under investment agreements: the TRIPS-plus implications for enforcement and protection of public interest
27-Sep-2006 South Centre
One of the issues that has recently started to influence the negotiations for new investment agreements involves the question of the status of IP rights and the impact of investment agreements on the rights, obligations and regulatory discretions of countries under the Agreement on Trade-Related Aspect of Intellectual Property Rights (TRIPS) of the World Trade Organization (WTO).
International court rules in favor of Hungary in Telenor case
21-Sep-2006
The International Centre for Settlement of Investment Disputes (ICSID) has ruled in favor of the State of Hungary in a case brought against it by Norwegian telco Telenor, business daily Világgazdaság reported on Monday.
Oxus Gold seeks arbitration order to protect Kyrgyz investments
15-Sep-2006
Mining company Oxus Gold PLC said it is seeking an arbitration order to protect its investments in Kyrgyzstan, following the government-sponsored seizure of premises owned by Talas Gold Mining Co, Oxus’ joint venture company at Jerooy. Oxus said that representatives of Jerooyaltyn, a recently created joint venture between Kyrgyzaltyn and Global G.o.l.d, and local police forcibly took possession of the building on Thursday in direct contravention of the UK-Kyrgyz Bilateral Investment Treaty and Kyrgyz law.
Ecuador Prez: No Oxy arbitration
11-Sep-2006
Ecuadorian President Alfredo Palacio has rejected arbitration against his nation for annulling in May the contract with US Oxy oil company that operated there.
Analysis: Will UNCITRAL arbitrations become even more secretive?
3-Sep-2006
Proposals tabled by the Vienna-based UNCITRAL Secretariat could make it more difficult for observers to discover and monitor international arbitrations taking place under the UNCITRAL rules.
Under RP-Japan Economic Partnership Agreement local settlement of disputes agreed on
30-Aug-2006
The Philippines and Japan have agreed to settle all disputes domestically under the proposed Economic Partnership Agreement unless the Secretaries of Trade of both countries agree to bring the dispute to an international arbitration court.
Court denies Occidental bid for assets - Ecuador
24-Aug-2006
An international arbitration court has rejected a request by Occidental Petroleum Corp. to stop Ecuador from seizing its assets in the Andean country, a government official said on Tuesday.
Azurix wins $165 million vs Argentina in latest ICSID ruling
15-Aug-2006
Former Enron Corp. (ENE) water unit Azurix Corp. has been awarded $165 million against Argentina in the latest ruling on dozens of international arbitration claims brought against the country by foreign companies. A person familiar with the situation confirmed Tuesday that both parties were informed Monday of the decision by a tribunal at the International Center for the Settlement of Investment Disputes, or the ICSID.
Seoul reveals a lack of experience in FTA negotiations
9-Aug-2006
"We are learning new things while we’re negotiating with the American representatives," said a Korean official who was part of the labor section negotiation team during the first round of the Korea-U.S. FTA talks, held in Washington last June. "The U.S. is demanding the introduction of a so-called ’public communication system,’ which was a term that we heard for the first time," the negotiator told Hankyoreh.
Canada: The Occidental Tourist - Expropriation Claim Tests BIT Efficacy
31-Jul-2006
The outcome of Occidental Petroleum’s latest dispute with Ecuador will be an important test of the effectiveness of BITs in protecting overseas investor rights in volatile political climates.
Vannessa Arbitration Update
31-Jul-2006
Vannessa Ventures Ltd. (the "Company") has an arbitral claim being heard in accordance with the rules of the International Centre for Settlement of Investment Disputes (ICSID) in Washington, D.C. where Vannessa is requesting remedies under the Bilateral Investment Treaty between Venezuela and Canada.
Zimbabwe farmers claim for land grab
25-Jul-2006 Business Day
A group of 11 dispossessed Zimbabwean farmers of Dutch origin are poised to take their case for compensation in respect of confiscated land to an international tribunal.
New legal threat over Yukos sale
12-Jul-2006 FT
The Kremlin will face yet another legal headache on Tuesday over its role in the break-up of Yukos after US attorneys began an arbitration proceeding in Spain on behalf of Spanish investors who were allegedly hurt by the Yukos affair.
Will recent nationalisations in Bolivia give rise to claims under political risk insurance policies?
15-Jun-2006 Mondaq
It may be advantageous for foreign investors to pursue a claim under a Political Risk insurance policy and allow the insurers to recover subsequently under any applicable investment treaty by way of subrogation.
Ecuador: Government gears up for Oxy fallout
26-May-2006 IPS
Showing the door to Occidental Petroleum (Oxy) and scuttling US free trade negotiations have long been agenda priorities for Ecuadorian social movements and political sectors. But following government steps that have all but made these goals a reality, the atmosphere seems more anxious than celebratory.
Ecuador to oppose arbitration claim filed by Occidental Petroleum
24-May-2006 MarketWatch
Ecuador will oppose an arbitration suit filed last week by Occidental Petroleum Corp (OXY) with the World Bank’s International Center for Investment Disputes in Washington, DC, said Ecuadorean Attorney General Jose Maria Borja.
US oil firm files arbitration claim against Ecuador for ’expropriation’
18-May-2006 ANTARA
The US-based Occidental Petroleum Company has filed an arbitration claim against Quito for canceling its exploration rights, a move that resulted in a suspension of free trade talks with Washington.
Occidental files BIT claim against Ecuador at ICSID
18-May-2006
US-based Occidental Petroleum has responded swiftly to a move by the Ecuadorian Government to kick the company out of Ecuador. The firm filed a request for arbitration with the Washington-based International Centre for Settlement of Investment Disputes (ICSID) yesterday. The company’s claim is expected to be for at least $1 Billion (US) in damages.
JPEPA: Arbitration framework readied
18-May-2006 Manila Bulletin
The Philippines and Japan are moving towards adopting arbitration procedures in settling disputes to avoid lengthy and expensive court battles in protecting investments from both sides as they finalize their proposed bilateral free trade pact.