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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.

Report: Evaluating the Proposed Joint Interpretation of the Comprehensive Economic and Trade Agreement (CETA)
25-Jan-2023 Saskia Bricmont
This report analyzes the proposed interpretive guidance on the Investment Chapter of the Comprehensive Economic and Trade agreement (CETA) between Canada and the European Union.
Why a coordinated withdrawal from the Energy Charter Treaty is inevitable
25-Jan-2023 Euractiv
Since October 2022, seven EU member states have announced plans to withdraw from the European Charter Treaty. Across the board, the message is clear: the insufficient and potentially climate-damaging treaty reform effort is no longer a politically viable option.
Bite Latvia shareholder appeals to govt over 5G action by regulator SPRK
24-Jan-2023 Telecompaper
The US-based company Providence Equity Partners claims that certain actions by national public service regulator SPRK indicate a possible violation of the bilateral investment agreement between the US and Latvian governments.
Polluter doesn’t pay: The Rockhopper v Italy award
23-Jan-2023 EJIL: Talk!
The way in which the reasoning of the Rockhopper award expels any environmental considerations has the effect of making climate change interventions considerably more costly
Greta Thunberg’s arrest shows why we must abolish the Energy Charter Treaty
23-Jan-2023 Open Democracy
The treaty allows fossil fuel companies to sue governments for taking climate change action. It must go.
How Chinese companies are challenging national security decisions that could delay 5G network rollout
23-Jan-2023 The Conversation
A relatively new strategy for China is to challenge national security decisions before international tribunals using a method called investor-state dispute settlement.
CAB urges energy ministry for not signing Energy Charter Treaty
20-Jan-2023 The Daily Star
The Consumers Association of Bangladesh (CAB) submitted a petition, signed by 25,720 persons, urging the energy ministry for not signing the Energy Charter Treaty as the signing of the treaty will affect the public interest and the nation’s energy sector.
AfCFTA protocol on investment draft (Feb 2022)
18-Jan-2023
Hungarian oil giant MOL to sue Slovak government for windfall tax
18-Jan-2023 Euractiv
MOL and its Slovak subsidiary Slovnaft are working on a lawsuit against the government for the new windfall tax which aims to raise funds to help with expensive energy for more affected industries and households.
The secretive legal weapon that fossil fuel interests use against climate-conscious countries
18-Jan-2023 Grist
Investor-state dispute settlements increasingly allow oil and gas investors to sue countries over their climate policies.
Canada ISDS roundup
11-Jan-2023 CCPA
Just before Christmas, Canadian copper miner First Quantum, in an ongoing spat with the Panamanian government over royalties, launched two ISDS cases against the state.
Three amigos or fair-weather friends?
11-Jan-2023 The Monitor
This week’s North American Leaders’ summit is soured by dubious challenges to Mexican food and energy sovereignty.
France officially leaves Energy Charter Treaty
3-Jan-2023 See
France confirmed the decision announced by Macron in October and notified the other signatories of the withdrawal, which will take effect on January 1, 2024.
Access (Amway) vs Mexico: San Isidro’s people struggle to get their land back
1-Jan-2023 GRAIN
Switzerland must withdraw from the Energy Charter
18-Dec-2022 Alliance Sud
The Energy Charter Treaty protects companies that invest in fossil fuels. A growing number of countries are withdrawing from it, while Switzerland continues to thwart the energy transition.
The Energy Charter Treaty is on life support with little chance of revival
12-Dec-2022 Euractiv
After the withdrawal of eight EU member states, the European Commission has little prospect of reviving stalled talks to modernise the 1998 Energy Charter Treaty.
Govt, Barrick Gold settlement agreement ’legal’ in Reko Diq project: SC
9-Dec-2022 The Express Tribune
The Supreme Court declared that the settlement agreement between Canadian mining company Barrick Gold and the government of Pakistan in the Reko Diq mining project is legal.
Proposed BIT with Hungary: Differences emerge between BoI, ministries over proposal
7-Dec-2022 Business Recorder
There are two sticking points in the negotiations of the Pakistan-Hungary BIT: one is “Expropriation” and the other is “Subrogation”.
Air Tanzania plane seized in the Netherlands
7-Dec-2022 The Citizen
Air Tanzania Company Limited plane has been seized in the Netherlands after a Swedish firm won a $165 million award against Tanzania due to revoked land title in the Bagamoyo sugar project.
Lone Pine’s claim is dismissed… to the CQDE’s relief
6-Dec-2022 CQDE
The Centre québécois du droit de l’environnement is delighted that an ICSID Arbitral Tribunal decided, on November 21, 2022, to reject the claim for approximately $150 million by the American company Lone Pine Resources Inc.