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.
Winshear Gold Corp. has filed a case at ICSID against Tanzania for the expropriation of the company’s retention licenses, claiming the country has breached its obligations under the Tanzania-Canada BIT.
Terminating 23 BITs is an important step for Pakistan, but if relationships with the WTO, the IMF and the World Bank remain, economic efficiency will continue to be prioritised over social justice and the rights of citizens.
Draft law, regulator pose risks to Discovery’s unit in Poland but Polish watchdog says treaty exempts broadcast investments.
To end neoliberalism and defend energy resources, Mexico must step up and avoid at all costs the inclusion of supranational arbitration mechanisms in a renegotiated FTA with the European Union.
The broad mandate given by UNCITRAL focuses on a limited set of procedural issues that fails to address the substantive concerns over the crisis of legitimacy confronting the international investment regime, and ISDS more specifically.
Spanish Solar demands compensation from the Spanish Government for having cut the premiums for the use of energy once the investments have been made.
A lawsuit filed against the Mexican government for denying a permit for seabed mining has put a spotlight on the lack of international rules for such practices.
Human rights experts are particularly concerned about the asymmetric nature of the system and a lack of investors’ human rights obligations. Together with high ISDS costs and arbitral awards, they undermine states’ ability to realise economic, social, cultural and environmental rights.
TC Energy expects to get 15 times more money, coming from taxpayers’ pockets, than the asset losses it experienced from the revocation of a permit, that was already denied twice.
New evidence from a UN report and a high-profile investor arbitration case is casting a spotlight on Rwanda’s role in sophisticated smuggling networks that extract gold and coltan from Congolese conflict zones and funnel the strategically important minerals illicitly into global supply chains.
India proposed scrapping a controversial law that taxed companies retrospectively, a move that could potentially settle its multi-billion-dollar tax cases with Cairn Energy and Vodafone.
Decision aimed at avoiding international arbitration with foreign firms .
France-based Vicat raised a case against the Egyptian government with the International Centre for Settlement of Investment Disputes in late June 2021. It concerns its cement production business.
Ahead of the African Continental Free Trade Agreement (AfCFTA) implementation in Nigeria, the Nigerian Institute of Chartered Arbitrators and other stakeholders are seeking dispute resolution mechanisms that will address concerns of non-state entities.
Corporate courts were invented to protect the West’s control of the world against decolonisation. They are now undermining attempts to halt climate change.
The Permanent Court of Arbitration ruled that Russia illegally expropriated loans provided by Yukos Capital Sarl to its former parent company.
Bernhard von Pezold and his family have enlisted the help of a US federal court in Washington DC in enforcing a US$277 million arbitral award against Zimbabwe.
The derailment of the plans led Canadian mining company Gabriel Resources to sue the Romanian government for $5.7 billion before the Washington-based ICSID.
Indiana Resources files a memorial on the arbitration with Tanzania over the expropriation of the Ntaka Hill Nickel Project, whereby it claims the amount of AU$127 million, including interest which continues to accrue.
Pakistan is the latest country to reject the system that allows private investors to sue governments in international tribunals. But Ecuador is back-tracking and the lawsuits continue to proliferate.