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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.

Costa Rica says wins arbitration case over open-pit gold mine
29-Jun-2021 Reuters
An international arbitration panel ruled Costa Rica does not owe Canadian miner Infinito Gold compensation after the cancellation of a mining project a decade ago.
Ecuador signs the ICSID Convention
29-Jun-2021 ICSID
Ecuador had denounced the ICSID Convention in 2009. The convention establishes the institutional and legal framework for resolving international investment disputes.
Corporate power and abuse is a root cause of migration
29-Jun-2021 People’s World
To seriously address the roots and causes of migration, it is urgent to dismantle the neoliberal rules which grant excessive privileges to transnational corporations.
Conquering EU courts? Big business lobbies in secret for new legal privileges in the EU
29-Jun-2021 CEO
Business lobby groups started lobbying the European Commission to create a new parallel justice system, similar to the old intra-EU BITs, but compatible with EU law.
Nigerian govt asked not to ascent to Energy Charter Treaty
23-Jun-2021 Leadership
Nigerian labour unions and civil society organizations have urged the government not to assent to the ECT, explaining that the Treaty contains provisions for an Investor-State Dispute System (ISDS), which accords investors obscene privileges.
Minister calls for establishment of more arbitration institutions
7-Jun-2021 Nigerian Tribune
The Nigerian Minister of Industry, Trade and Investment, has called for the establishment and strengthening of more arbitration institutions in Africa in line with international standards.
Ecuador to seek ’payment plan’ for award to French oil company
3-Jun-2021 Reuters
Ecuador has 60 days to make the payment and has already contacted Perenco to start negotiations. In 2020, the country inked a $6.5 billion emergency deal with the IMF.
Ecuadorean state should pay $412 million to Perenco after losing legal dispute
2-Jun-2021 Amico Hoops
The Ecuadorean country will have to face a millionaire sum for Perenco oil company after a ruling by a panel formed under the auspices of the World Bank’s International Center for Settlement of Investment Disputes.
Final UK FTA talks on corporate rights to sue governments alarm community groups
31-May-2021 AFTINET
We call on the Australian Government to exclude ISDS from the Australia-UK FTA as has been done in the Australia-EU FTA and the RCEP.
Alarm at secret court scheme in UK-Australia trade deal
31-May-2021 The Guardian
Campaigners concerned by controversial plans for tribunals where firms can seek compensation for effect of government policies.
The Cairn $1.4 billion award is patently illegal
31-May-2021 NDTV
The arbitral award has condoned the tax avoidance scheme adopted by Cairn Energy.
AfCFTA Secretariat establishes court to resolve trade disputes
31-May-2021 Ghana Web
The AfCFTA Secretariat has established a dispute settlement body, that will function as a full-court with the right mechanisms and structures in place to settle trade disputes.
Denying India its tax revenue is neo-colonialism. Cairn Energy is the new East India Company!
28-May-2021 The Leaflet
The perverse interplay of BITs with double taxation avoidance agreements has been bleeding India from the much-needed tax revenues.
Energoatom suing Russia to get compensation for assets lost in Crimea
28-May-2021 Unian
The dispute is about the assets it lost in Crimea, including the Donuzlav wind farm, which is now located in the temporarily occupied territory.
US oil service group seeks $100 million from Mexico in arbitration claim
19-May-2021 Reuters
Finley Resources alleges Mexico violated investor protections under the NAFTA trade pact by failing to honor agreements.
Corporate courts threat to insects
18-May-2021 The Ecologist
The shadowy parallel court system of major trade agreements makes it difficult for countries to ban broad-spectrum insecticides.
Canada BIT model (May 2021)
14-May-2021 Government of Canada
Turkmenistan wins $500 million claim brought before international arbitration tribunal by Turkish construction company
14-May-2021 AKIpress
The government of Turkmenistan has won $500 million claim brought before the International Centre for Settlement of Investment Disputes by a Turkish construction company.
Tasks before the AfCFTA dispute settlement body
12-May-2021 Nairametrics
The inaugural meeting of the dispute settlement body of the AfCFTA signals the readiness of this infrastructure to take up any disputes that may arise in the course of trading amongst the member States.
Gerald Group resolves iron ore dispute with Sierra Leone
12-May-2021 Reuters
US commodity trader Gerald Group will pay Sierra Leone $20 million and cede a 10% stake in an iron ore project as part of the resolution to a nearly two-year dispute that led to the shutdown of production.