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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.

Not far enough – the state of the free trade agreement between Colombia and the United States
26-Mar-2025 TNI
Despite criticism of the free trade agreement with the United States, Colombian President Gustavo Petro opted to reassess a series of clauses on investments and arbitration, instead of requesting a complete renegotiation.
Highway heist in Honduras: How corporations fleece regular people in impoverished countries
25-Mar-2025 Foreign Policy in Focus
Extraordinary corporate privileges in US foreign and trade policy are designed to help companies win even when their investments fail.
EU Commission tells Spain not to pay up in long-running renewable subsidies case
25-Mar-2025 Reuters
The European Commission handed Spain a victory when it instructed the country not to pay any compensation in a case related to claims amounting to billions of euros on renewable energy subsidies cut more than a decade ago.
Almadex files memorial documentation for investment arbitration claim against Mexico
24-Mar-2025 Financial Post
Almadex has filed its memorial submission relating to its international arbitration proceedings under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership with Mexico, seeking damages of US$1.06 billion.
S. Korea loses suit against int’l court ruling on compensation to Mason Capital over Samsung merger
24-Mar-2025 Yonhap
South Korea has lost a lawsuit seeking to annul an investor-state dispute settlement (ISDS) ruling that ordered it to pay compensation to US hedge fund Mason Capital over losses from Samsung’s controversial 2015 merger of two units.
Notification to Ukraine under international investment agreements
20-Mar-2025 London Stock Exchange
Ferrexpo plc has provided a formal written notification to Ukraine under international investment agreements in place between Ukraine and the United Kingdom and Ukraine and Switzerland.
Romania loses Washington lawsuit over Dobrogea wind farm
20-Mar-2025 Romania Journal
The Romanian state has lost a lawsuit pending before the International Court of Arbitration in Washington, initiated in 2020 by an investor in the renewable energy sector.
Honduras fights back against global oligarchy
18-Mar-2025 Public Seminar
How an unregulated techno-utopia came into existence and continues to sabotage a nation’s sovereignty.
Brookfield files US$2.7 billion case against Peru over toll roads
14-Mar-2025 Financial Post
The action is being taken under the umbrella of the free trade agreement between Peru and Canada.
Egypt approves investment protection deal with Saudi Arabia
13-Mar-2025 Arab News
Egypt’s parliament has approved a bilateral investment protection agreement with Saudi Arabia, aiming to boost capital inflows, create jobs, and strengthen economic ties between the two nations.
Allowing foreign firms to sue governments for lost profits is legal terrorism – it must end
10-Mar-2025 The Guardian
Investor–state dispute settlements don’t just mean growing debt burdens for countries: they are also a barrier to action on the climate crisis.
"Totally irresponsible": how Exxon is exploiting international law to sue the Dutch government
10-Mar-2025 Land and Climate Review
Exxon owes the people of Groningen millions in compensation for damage caused by gas extraction. Thanks to an obscure legal instrument, it could be the residents of the province that end up compensating the fossil fuel giant.
The ICSID ruling states that a bribe was demanded for Grandi
10-Mar-2025 Koha
Kosovo will pay over 6.7 million euros to MabCo Constructions, owned by former President Behgjet Pacolli, following a decision by the Arbitration Tribunal in Washington.
Why fear of billion-dollar lawsuits stops countries phasing out fossil fuels
7-Mar-2025 The Guardian
Companies can sue governments for closing oilfields and mines – and the risk of huge damages is already stopping countries from passing green laws, ministers say.
The rights of nature become a rallying point against an ascendant mining industry
7-Mar-2025 Inside Climate News
Communities and ecosystems across the globe face heavy environmental damage from intensifying mining operations. A people’s tribunal probed the Canadian mining industry’s impact on the natural world and the people defending it.
Revealed: how Wall Street is making millions betting against green laws
6-Mar-2025 The Guardian
Fossil-fuel and mining firms have won $92bn of public money from states, with a growing number of cases backed by financial speculators
Gold Reserve announces filing of international arbitration against the Venezuelan government
6-Mar-2025 PR Newswire
The arbitration arises from Venezuela’s measures that deprived GR Mining of its rights to, and materially damaged its investment in, the multi-billion-dollar Siembra Minera mining project located in Venezuela.
Corporate colonization through trade: A new scramble for Africa
5-Mar-2025 Public Citizen
Investor-State Dispute Settlement has become a significant concern for African nations, as it often privileges multinational corporations at the expense of local governance and public welfare.
Montero receives final instalment of US$7 million from Tanzania
5-Mar-2025 The Manila Times
Montero confirms that US$7,000,000 in cash have been received by the Company from Tanzania, which is expected to put an end to the dispute in connection with Tanzania’s expropriation of Montero’s Wigu Hill rare earth element project.
Fearing toxic waste, Greenland ended uranium mining. Now, they could be forced to restart - or pay $11bn
5-Mar-2025 The Guardian
The island is being sued by a mining company over its decision, and faces paying nine times its annual budget in damages if it loses.