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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.

TTIP: le gouvernement britannique ignore ses propres avertissements
26-Apr-2016 Sputnik
Les futurs tribunaux spéciaux qui régleront les litiges provoqués par le Traité transatlantique controversé TTIP présentent plus de risques que d’avantages pour les gouvernements européens.
TTIP: UK Government found trade deal had ’lots of risk and no benefit’ in its only assessment
26-Apr-2016 The Independent
This stark warning against TTIP was disclosed in response to a Freedom of Information request by anti-TTIP campaigners
RCEP - draft investment chapter (October 2015)
22-Apr-2016 KEI
As leaked by KEI
RCEP draft text for investment chapter, October 16, 2015 version
22-Apr-2016 KEI
Overall, the investment chapter is designed to give private parties the right to extract costly damages from governments that implement policies that harm profits.
Dutch court overturns $50 billion ruling against Russia in Yukos case
21-Apr-2016 New York Times
In a major victory for the Russian government, a Dutch court overturned an award of more than $50 billion to former shareholders of the defunct oil company Yukos.
TISA plurilateral accord by year end?
19-Apr-2016 SUNS
Trade envoys of the United States, the European Union, and Australia among others decided to accelerate negotiations towards a plurilateral deal called the Trade in Services Agreement (TISA) by the end of this year.
Colombia: there’s no place for clean water under ’free trade’
15-Apr-2016 The Ecologist
The latest country to be hooked under ’free trade’ agreements is Colombia sued for tens of billions of dollars for valuing its national parks and the high-altitude Andean wetlands that provide 70% of the nation’s water above the profits of foreign corporations.
Costa Rica’s request to terminate Infinito Gold’s ICSID claim: brief reflections
14-Apr-2016 Rebelión
On 24 July 2015, Costa Rica requested the termination of the arbitral proceedings that the Canadian Mining company, Infinito Gold filed with the Centre for the Settlement of Disputes between Foreign Investors and States.
The TTIP: serious consequences for public health
14-Apr-2016 Nueva Tribuna
Private arbitral tribunals will be able to impose multi-million fines on States whose parliaments have dared to legislate without taking into account corporate expectations.
The transatlantic free trade treaty: the climate’s enemy
14-Apr-2016 Reporterre
Threats against environmental directives, legal arbitration against States, the growth of trade generating CO2… while discussions between the United States and the European Union continue, the author of this article demonstrates that this treaty is incompatible with the Paris Agreement on Climate.
French court rules in favor of Russia’s Roscosmos in Yukos assets seizure case
14-Apr-2016 Moscow Times
Russian space agency Roscosmos has won a court action in France concerning $700 million in payments owed to the company, which were seized by French authorities.
France seizes $ 1 billion in Russian state assets
13-Apr-2016 Politico
France has seized $700 million in Russian state assets at the initiative of former Yukos shareholders.
High Court the final authority? Think again
11-Apr-2016 Sidney Morning Herald
US mining company Nucoil is using a free trade agreement to put pressure on the Australian government to pay compensation over cancelled licences.
TDM 1 (2016) - CETA Special
7-Apr-2016 TDM
This is the first detailed collection of reviews of CETA after its latest revisions, including the reworked Investment Chapter with an investment court replacing international arbitration.
Venezuela ordered to pay Crystallex US$ 1.386 billion in arbitration ruling
6-Apr-2016 Financial Post
An arbitration tribunal has ordered the Venezuelan government to pay a whopping US$1.386 billion to Canadian miner Crystallex International Corp.
It’s not just Europeans who will feel the consequences of TTIP
5-Apr-2016 New Statesman
One element of TTIP has been largely ignored – the deal’s impact on developing countries.
Dette : l’Argentine prête à verser 50 millions à BNP Paribas
4-Apr-2016 Les Echos
Dans le sillage des accords avec les fonds « vautours », Buenos Aires accepte de verser 52 millions de dollars à BNP Paribas.
Mining company files ISDS case against Panama
1-Apr-2016 Politico
New York-based Dominion Minerals Corporation decided to move ahead with an investor-state dispute case against the Panamanian government.
New analysis shows ’frivolous’ corporate sovereignty suits increasingly used to deter regulation rather than win compensation
1-Apr-2016 Tech Dirt
Why would investors continue to file these highly costly cases, if the expected success rate is so low?
Investment protection in ASEAN – part 1: the ASEAN Comprehensive Investment Agreement
31-Mar-2016 ASEAN Briefing
The ASEAN Comprehensive Investment Agreement (ACIA) was adopted in 2009 to establish an investment environment based on international best practices.