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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.


Mexico faces French expropriation arbitration
The expropriation of a hydrogen plant in Mexico early last year has led to the filing of an investment arbitration against the state.
Energy Charter Treaty irrelevant to Africa
The Energy Charter Treaty not only locks countries into outdated fossil fuel investments but also hampers their ability to pursue sustainable, climate-friendly energy policies.
Romania’s biggest ICSID cases, and what they mean for foreign investment
Romania currently has nine pending cases with the International Centre for the Settlement of Investment Disputes. Here are three of three of the biggest cases in the last few years, and what they mean for foreign investors in Romania.
Thousands of people protest for more climate protection
In Bern, several hundred people on the Bundesplatz criticized the federal government, which wants to modernize the International Energy Charter Treaty that came into force in 1998. They called for an exit.
UAE investor files arbitration against Comoros
A Swiss law firm is representing a UAE company in an ICSID arbitration against the African island nation, alleging expropriation of investments and unfair treatment.
Israeli developer accuses Cyprus of political persecution in landmark lawsuit
The lawsuit, filed against the Republic of Cyprus, is based on a 1998 bilateral investment treaty between Cyprus and Israel.
Estonia wins 30-year-long Seaplane Harbor ownership dispute tribunal
An international arbitration tribunal has ruled that Estonia acted lawfully in restoring ownership of the Seaplane Harbor (Lennusadam) and ending a 30-year dispute.
Conflicts of interest and sovereignty at stake: The Ecuador-Canada FTA
Ecuador’s free trade agreement with Canada presents a glaring conflict of interest for President Noboa, whose family, one of Ecuador’s wealthiest, has a sizable financial stake in a Canada-based mining company.
First Quantum to discontinue two Cobre Panama arbitration proceedings
First Quantum Minerals said it had agreed to discontinue two arbitration proceedings related to its Cobre Panama copper mine.
Investment treaties: Protecting transition investments, but are they just?
The urgent demand for critical minerals has led to the expansion of mining operations, often accompanied by significant human rights and environmental abuses that cause social unrest and spark disputes between states and foreign investors.
The financialisation of international investment law
The landscape of financial profiteering from investor-state dispute settlement claims.
Kazakhstan ratifies investment protection agreement with Kyrgyzstan
The lower house of Kazakhstan’s parliament has approved the law on ratifying the agreement between Kazakhstan and Kyrgyzstan on encouragement and mutual protection of investments.
British oil company files lawsuit against Kazakhstan
British oil and gas company Victoria Oil & Gas has filed a lawsuit against Kazakhstan, citing provisions under the Energy Charter Treaty.
Not far enough – the state of the free trade agreement between Colombia and the United States
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
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
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
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
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
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
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.