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.
Combined with the dispute settlement mechanism of international arbitration, investment treaties have been transformed intol "weapons of legal destruction."
Businesses in the mining sector and beyond insist protection for Australian investors in Indonesia is required in a free trade deal.
The UNCITRAL process runs a real risk of producing middle-ground solutions that will fail to address the fundamental flaws of the ISDS system and will only further institutionalise and re-legitimise the system.
More than 300 civil society groups and trade unions urged governments participating in United Nations meetings in Vienna to completely overhaul the controversial Investor-State Dispute Settlement (ISDS) system.
As published by the European Commission
Unverified rumours circulated in early 2018 that Canada was willing to abandon NAFTA’s provisions entitling foreign investors to sue for damages under what is called investor-state dispute settlement, or ISDS.
The documents highlight for the first time the pressure placed on the French parliament by a foreign company’s threat to use the ISDS mechanism.
The UN Conference on Trade and Development new research shows that increased market power of global corporations is driving global income inequality. It recommends a review of existing regulation and trade agreements to develop “measures to curb abusive business practices.”
South Korean utility Korea Western Power Company (Kowepo) has begun arbitration proceedings against India for not honoring a fuel supply commitment to a gas-based power plant that it part-owns in western India
A case filed by Cortec Mining Ltd and two others against the Republic of Kenya under the Kenya-UK BIT amounting to Ksh.200billion has been dismissed.
Investor-state dispute settlement was tempered in the USMCA, but the government needs to justify why it persists asking for it in other agreements.
Swiss elevator maker, Schindler Group, has officially filed for an investor state dispute settlement against the Korean government seeking US$300 million in compensation for losses over its approval of paid-in capital increase of Hyundai Elevator
Crossbenchers are ramping up pressure on Labor at the 11th hour to reject the
Trans-Pacific Partnership free trade agreement, drafting amendments that
would force opposition senators to vote against the party’s policy.
The number of known investment treaty claims concerning agricultural investments has grown rapidly in recent years. This new briefing note from IIED, IISD and CCSI helps policy makers navigate the challenges.
Singapore and Indonesia signed an agreement to promote and protect investments, with the treaty promising Singapore companies operating in Indonesia protection and access to international arbitration in the event of investment disputes.
Tanzania has terminated its Bilateral Investment Agreement with the Netherlands that East African and Dutch civil society had said was biased against the country.
The oil business persuaded the White House to keep a number of features of the old NAFTA, including provisions that help protect US oil companies’ investments abroad and allow for tax-free transport of raw and refined products across borders.
More outsourcing of pollution and jobs, handouts to corporate polluters, and climate denial
Pablo Fajardo, the lead lawyer for the communities who have been fighting for 25 years for compensation for the severe pollution in the amazon region, and Donald Moncayo, one of the coordinators of the organization that has led this campaign talk about the Chevron case.
Tanzania is urged to review the 15 years Bilateral Investment Treaty (BIT) with the Kingdom of Netherlands expires in April 2019 before it reckons itself for another 10 years.