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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.

Lone Star, other investor-state disputes cost Korea W68.5b
10-Oct-2022 Korea Herald
South Korea has spent nearly 68.5 billion won ($48.1 million) in total to fight and settle investor-state dispute settlements since 2013,#including its battle with US-based private equity firm Lone Star, data showed.
The false makeup for the TPP-11: the “side letters”
4-Oct-2022 América Latina Mejor Sin TLC
The impacts that TPP-11 will have then must be analyzed in an integral way, not by chapters. For years now, from various academic and social sectors, we have been explaining that agreements such as the TPP-11 are negative in their entirety.
No to TPP-11! Chile’s battle for sovereignty
3-Oct-2022 Pressenza
The recent experience of the countries that have already ratified the TPP-11 and begun to operate, has demonstrated the character of this treaty and its pro-business tribunals, which is nothing more than an insurance for large corporations on their profits and markets.
Decade-long ISDS lawsuit vs Lone Star costs S. Korean gov’t $40 mn
3-Oct-2022 Pulse
The South Korean government is found to have spent nearly $40 million in litigation expenses for its decade-long legal dispute against US private equity firm Lone Star Funds.
ISDS in Nigeria: Investment regime reforms and the threats of joining the ECT
3-Oct-2022 TNI
This report sheds light on Nigeria’s investment protection regime and its consequences for one of Africa’s biggest countries.
CETA: An attack on health, the environment, consumer protection and democracy
30-Sep-2022 Foodwatch
The trade agreement disempowers the European Parliament and strengthens the influence of corporations.
Pro-business arbitration with ISDS
25-Sep-2022 HAL
In a repeated-interaction setting ISDS is prone to collusion to the benefit of all parties except the host states, study shows.
On trade, post-Brexit Britain is less transparent than ever
23-Sep-2022 Open Democracy
Australia deal and Energy Charter Treaty show why we must be able to hold government accountable for trade.
Colombian courts must not be undermined by shadowy international tribunals, say campaigners
20-Sep-2022 Institute for Policy Studies
International organizations appeal to Colombia’s highest court over human rights violations at one of the largest open pit coal mines in the world.
Newly released text for modernized Energy Charter Treaty shows too many potential obstacles for climate action
15-Sep-2022 IISD
The text of the agreement in principle to modernize the Energy Charter Treaty leaves unanswered too many crucial questions about the possibility of further fossil fuel carveouts and the exact timing of its entry into force.
The not-so-hidden cost to “mega” energy deals : the Energy Charter Treaty (ECT) in East Africa (in conversation with Olivia Costa and Brenda Akankunda)
14-Sep-2022 State of Power
The ECT Secretariat, whose survival depends on continuation of the treaty, continues to lobby these countries to take additional steps towards acceding to the Energy Charter Treaty.
Energy Charter Treaty modernisation text (Jun 2022)
13-Sep-2022
Before the flood? The looming risk of corporations suing states for Covid-related measures
12-Sep-2022 Business & Human Rights Resource Centre
Now the Covid-19 pandemic is no longer in the headlines in many parts of the world, the risk corporations will use investment treaties to claim compensation from governments to cover their losses during these exceptional times is increasing.
British investors could sue Australia over climate action if UK joins trans-Pacific trade pact
8-Sep-2022 The Conversation
It’s a portent of claims Australia may face from British companies invested in Australia’s fossil-fuel industries if the United Kingdom gets its way and joins the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Korea on alert over 6 more investor-state suits following Lone Star ruling
5-Sep-2022 The Korea Times
The total amount of claims asked by claimants against the Korean government exceeds $1.2 billion.
Poland drafts law to ‘terminate’ controversial Energy Charter Treaty
2-Sep-2022 Euractiv
The draft law on the “termination of the of the Energy Charter Treaty” and its protocols was agreed by the Polish government on 10 August and sent to the country’s lower chamber.
South Korea to appeal international tribunal’s order to pay Lone Star By Kim Arin
1-Sep-2022 Korea Herald
South Korea plans to seek annulment of an international tribunal’s verdict to compensate Lone Star Funds in a decade long investor-to-state dispute arbitration.
S. Korea ordered to pay Lone Star US$216.5 mln in investor-state suit
31-Aug-2022 Yonhap
An international tribunal ordered South Korea to pay the US private equity firm Lone Star Funds US$216.5 million, bringing an end to a decade long legal battle surrounding its sell-off of a local bank.
Tensions rise as Korea waits for verdict on Lone Star dispute
26-Aug-2022 Korea Herald
The Korean public has been in outrage over the matter for more than a decade, claiming that the case was an international “fraud” committed by an overseas private equity firm.
Oil firm Rockhopper wins £210m payout after being banned from drilling
25-Aug-2022 The Guardian
Italian government ordered to compensate UK firm after exploration forbidden within 12 miles of coast.