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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.

Tanzania faces $500 Million investment dispute from Aqua Power
30-Sep-2024 Media Wire Express
In its claim, Aqua Power is demanding $500 million for lost business revenue over the past four years and for the value of its current projects within Tanzania.
Mexico loses phosphate mining lawsuit in controversial arbitration process
27-Sep-2024 Mongabay
Odyssey Marine Exploration, a deep-sea mining company based in Florida, sued Mexico after rejecting environmental permits for a phosphate mining project off the coast of the state of Baja California Sur.
Odyssey Marine Exploration reports win in NAFTA arbitration case
18-Sep-2024 Business Wire
The award orders Mexico to pay US$37.1 million for breaching its obligations under NAFTA, plus interest.
Clive Palmer’s $300bn claim ‘absurd’, says solicitor-general
17-Sep-2024 The Australian
The solicitor-general has pilloried Clive Palmer’s $300bn legal claim against Australia as weak, absurd and demonstrably in­adequate.
In Honduras, libertarians and legal claims threaten to bankrupt a nation
17-Sep-2024 Inside Climate News
One of Latin America’s poorest countries faces a wave of claims from foreign investors seeking billions of dollars. Chief among them is an American company looking to build a semi-autonomous “startup city.”
How the international investment law regime undermines access to justice for investment-affected stakeholders
17-Sep-2024 CCSI
From the perspective of investment-affected communities, foreign investments arise out of a partnership between the investor and the state. Impacted people are often not consulted or involved in project establishment or development.
Nigeria should audit her Bilateral Investment Treaties –Owonikoko
16-Sep-2024 New Telegraph
Why President Bola Tinubu should use diplomatic means to resolve the dispute, ANAYO EZUGWU brings the excerpts
Canada faces $100-million forfeiture ‘test case’ as Russian airline sues over grounded plane
13-Sep-2024 The Hill Times
In August 2023, Volga-Dnepr filed a motion of intent to initiate the dispute with Canada under a 1989 treaty that Ottawa penned with the then-Soviet Union, which included a investor-state dispute settlement system.
Serbia’s lithium gamble: Reviving Rio Tinto’s mine amidst protests and economic promises
12-Sep-2024 TNI
In 2021, Rio Tinto filed a notice of dispute related to the government announcement to cancel the Lithium project in the Jadar Valley under the UK-Serbia bilateral investment agreement.
SAMIR case: Morocco, Corral Holdings file for rectification of ICSID ruling
9-Sep-2024 Morocco World News
The SAMIR affair, dating back to the refinery’s 2015 closure, has seen Morocco and Corral Holdings locked in a bitter dispute before the ICSID tribunal.
A portrait of transnational power in Mexico: the investment protection system and its consequences
9-Sep-2024 TNI
This report looks at Mexico’s investment protection regime and outlines its main consequences for the country.
Smurfit Westrock awarded $469m against Venezuela by arbitration tribunal
30-Aug-2024 RTE
Global paper producer Smurfit Westrock has been awarded a $469m arbitration ruling against Venezuela by the World Bank’s International Centre for Settlement of Investment Disputes, the company and the tribunal said.
The for-profit city that might come crashing down
29-Aug-2024 New York Times
The dream of Próspera, founded by a US corporation off the coast of Honduras, was to escape government control. The Honduran government wants it gone but Próspera filed an astronomical $10.775 billion lawsuit against the state.
Earth Thrive: Has Rio Tinto initiated arbitration over the Jadar project?
27-Aug-2024 Mining See
Rio Tinto has officially notified the Serbian government about initiating arbitration proceedings concerning the halted Jadar project, under the bilateral investment treaty between the UK and Serbia.
How the treaty signed with China under OBJ got Nigeria’s jets seized, – ex-Presidential aide
26-Aug-2024 Daily Trust
Laolu Akande, former presidential aide, has shed light on the complexities and consequences of Nigeria’s bilateral investment treaty with China, which has led to significant legal challenges for the country.
Fossil fuel companies reap billions from arcane dispute clause
21-Aug-2024 Bloomberg
Fossil fuel companies have claimed billions of dollars from countries through an arcane legal provision that could deter governments from imposing more stringent climate laws.
Russian oligarch launches €15bn lawsuit against Luxembourg
19-Aug-2024 virgule
Mikhail Fridman files international arbitration case against Luxembourg after country froze his assets when he was hit by EU sanctions.
‘Expropriation threat’: Tanzania hit by $1.2 billion damages claim in bitter gas field dispute
9-Aug-2024 Upstream
Toronto-listed Orca Energy has hit Tanzania’s government with a US$1.2 billion claim
State lawmakers urge US exit from toxic ISDS mechanisms in trade deals
6-Aug-2024 Common Dreams
"Outdated trade rules like ISDS can pose a real threat to states’ sustainable energy initiatives and the good-paying jobs they create," said one lawmaker from Maine
Investment treaties are undermining the global energy transition
31-Jul-2024 E3G
Globally, 2 gigatonnes (Gt) of carbon dioxide equivalent (CO2e) of potential annual greenhouse gas emissions is protected via investment treaties.