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.
The Commission is currently gearing up to begin negotiating separate deals with Australia and New Zealand.
Prime Minister Jacinda Ardern announced plans to effectively ban foreign buyers of existing residential property but says the prohibition doesn’t put New Zealand at odds with the slimmed down version of the Trans-Pacific Partnership deal.
US Trade Representative Robert Lighthizer said that the US wants to opt out of ISDS in NAFTA, because of the risk and costs of US governments being sued by foreign corporations, and despite corporate lobby groups pushing to retain ISDS.
Hit by disputes with Vodafone and Cairn Energy, India welcomes plan for a World Court but flags legal, practical challenges.
First ISDS case against South Korea under Korea-US FTA.
How international investment treaties could promote more responsible investment and argues that, while some innovative practices are emerging, there is still much to do.
African Petroleum Corp has begun arbitration proceedings over Gambia’s decision to strip the company of its rights to explore for oil in two offshore areas.
The RCEP has hidden costs for people’s lives
US Nafta negotiators are proposing to essentially do away with the independent tribunals that oversee the trading and investment relationship.
The government of Pakistan would not be made liable for private investor disputes. Alternative dispute resolution mediation would be made compulsory, while foreign arbitrators would be decided in advance through consensus.
US clean energy company Invenergy LLC has notified the Polish authorities it plans to turn to international arbitration over its wind investments in the country, if no settlement is reached within six months.
RCEP will give multinational corporations unprecedented rights
The European Commission’s plans for a Multilateral Investment Court sanctions a biased and ineffective arbitration system, leaving people and the environment exposed to international investors’ whims.
Karuturi could sue the government of Ethiopia at international tribunals on the basis of violations of the Bilateral Investment Protection Agreement India and Ethiopia have signed on.
US ISDS proposal in NAFTA would cut fair and equitable treatment and indirect expropriation.
New laws revolve around the notion that Tanzania’s domestic law is to be supreme over any international dispute or arbitration decision.
Mexico is considering writing into law investor-state dispute settlement provisions contained in the North American Free Trade Agreement (Nafta) to reassure US and Canadian investors in its energy sector.
Recent decades have been marked by China’s economic, military and diplomatic rise, and its increasing integration into the international order.
Does the prospect of foreign investor claims against countries in investor–state dispute settlement (ISDS) lead to regulatory chill?
Brexit could become a money-making machine for law firms that make millions when corporations sue nation states via trade and investment agreements.