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.

Neocolonial ISDS, abused, biased, costly, and grossly unfair
9-Feb-2024 Inter Press Service
Investor-State Dispute Settlement (ISDS) provisions in international trade and investment agreements – long abused by opportunists with means – are slowly being rejected by cautious governments.
International Chamber of Commerce former arbitrator says ISDS has “lost battle of public opinion” and “legitimacy”
1-Feb-2024 AFTINET
To maintain the system, he proposes that business should shift away from ISDS in state-to state trade and investment agreements, and instead move to ISDS in contracts between individual investors and states.
How a US mining firm sued Mexico for billions – for trying to protect its own seabed
1-Feb-2024 The Guardian
Local fishers helped halt underwater mining off Baja California’s coast in 2018. But then an obscure international legal process was put into motion.
Zim govt pays heavily for seizing timber company’s land
27-Jan-2024 Zimeye
A London court has ordered Zimbabwe to pay US$125 million to two timber firms whose land was seized by the government, rejecting its claim of state immunity in a case that tests the enforcement of international arbitration awards.
Explainer: The different types of investor-state dispute settlement
26-Jan-2024 bilaterals.org
What type of ISDS arbitration has been the most used by corporations? Why is it important to understand the different forms of ISDS?
Their mines ruined communities. Now they want compensation
23-Jan-2024 Truthdig
In Colombia, lawsuits by foreign corporations are obstructing a fossil fuel phase-out at the expense of the indigenous Wayúu community.
Pakistan agrees to new ISDS provisions, despite previous policy to terminate ISDS agreements
23-Jan-2024 AFTINET
Pakistan’s previous policy, initiated in 2021, sought to terminate its bilateral investment treaties to avoid further ISDS cases by international investors.
Nexo initiates international arbitration case against Bulgaria
22-Jan-2024 Novinite
Cryptocurrency-based financial services company Nexo has filed a case against Bulgaria in an international arbitration court in the USA.
Islamabad accepts Riyadh-Doha term to allow international arbitration incase of dispute
17-Jan-2024 The News
Pakistan has negotiated to include a graduated approach for settlement of investment disputes between the state and investors.
Hong Kong investors plan AT1 action against Switzerland
16-Jan-2024 Nikkei Asia
Investors in Hong Kong are preparing to file a request for arbitration against the Swiss government for writing off the AT1 bonds issued by Credit Suisse, claiming the move was at odds with a bilateral investment treaty between the jurisdictions.
European Commission publishes model BIT clauses between EU member states and third countries
15-Jan-2024 IISD
In September 2023, the European Commission has unveiled a non-paper presenting model clauses for BITs between EU member states and third countries.
How wealthy corporations use investment agreements to extract millions from developing countries
15-Jan-2024 Inside Climate News
When Ecuador placed a windfall tax on foreign oil operations, French and U.S. companies filed claims—and were awarded more than $800 million.
Tribunal reject first ICSID claim brought against Norway
12-Jan-2024 Essex Court Chambers
Peteris Pildegovics and SIA North Star argued that Norway had violated the BIT between Latvia and Norway in relation to alleged investments of the claimants in snow crab harvesting licenses and harvesting vessels.
Deadlock as member states disagree over withdrawal from Energy Charter Treaty
11-Jan-2024 Euronews
Decision on whether to part from treaty remains in limbo, with some EU countries wanting to stay and others having already departed.
Al Habtoor group issues a notice of an investment dispute against Lebanon
10-Jan-2024 Al Habtoor
Emirati conglomerate Al Habtoor Group served a notice of an Investment Treaty Dispute against the Lebanese Republic in connection with Lebanon’s breaches of the Bilateral Investment Treaty between the United Arab Emirates and Lebanon.
USD 12 billion dispute decided in Tunisia’s favour
10-Jan-2024 CDR
A wrangle over a shareholding in a Tunisian bank which dates back to the 1980s has finally been resolved in arbitration.
What happens when a country says ‘no’ to mining?
9-Jan-2024 Canada’s National Observer
The battle between a Canadian mining company and Panama over one of the richest copper-gold mines in the Americas is headed to international arbitration – exposing Canada’s double standard when it comes to promoting free trade in the Global South.
Panama sued by 3+ mining companies after supreme court rules mining contract unconstitutional
9-Jan-2024 AFTINET
Panama is facing at least three Investor-State Dispute Settlement cases from mining investors who claim that their investments have been affected by the decision.
ABH Holdings S.A. brings $1 billion claim against Ukraine
5-Jan-2024 ABH Holdings S.A.
ABHH seeks full compensation for the expropriation of Sense Bank by the Ukrainian authorities through enforced nationalisation.
Panthera subsidiary notifies Indian government over Bhukia dispute
3-Jan-2024 Morning Star
Panthera, a gold exploration company with assets in India, said that its subsidiary Indo Gold Pty Ltd had issued a notice of dispute to the Indian government over the latter’s breach of the 1999 Australia-India bilateral investment treaty.