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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.

Venezuela loses US refinery as ConocoPhillips ICC award enforced in US court
8-Sep-2015 Latin American Herald Tribune
A U.S. Federal Court has upheld U.S. enforcement of an International Chamber of Commerce (ICC) arbitration agreeing that U.S. oil giant ConocoPhillips has the right to take Venezuela state oil company PDVSA’s 50% stake.
BIT template given final touches by BoI
7-Sep-2015 Business Recorder
The Board of Investment (BoI) has given final touches to a Bilateral Investment Treaty (BIT) template, which will replace the existing treaties with different countries. Alternative Dispute Resolution (ADR) mediation would be made compulsory.
European Commission admits defeat in trying to improve corporate sovereignty chapter in CETA
4-Sep-2015 Tech Dirt
The excitement over the mad dash to finish TPP — and the failure to do so — has rather obscured the other so-called trade deals currently being negotiated, such as TAFTA/TTIP and the one between the EU and Canada, CETA.
For the love of water: El Salvador’s mining ban
3-Sep-2015 Counter Punch
Over 90 percent of El Salvador’s surface water is contaminated with industrial chemicals, making it unsuitable to drink even if the water is boiled, chlorinated or filtered beforehand. A new action plan for passing a nationwide ban has begun to unfold, as Salvadorans await the outcome of the Pacific Rime ICSID case.
Arbitration Act to be taken up in next Parliament session: Gowda
1-Sep-2015 News Nation
The amendment to Arbitration Act will be taken up in the forthcoming Parliament session. The amended act would be on par with the United Nations Commission on International Trade Law (UNCITRAL) system.
Chafing at the BIT
29-Aug-2015 Financial Express
The government is looking to replace the Bilateral Investment Promotion and Protection Agreements (BIPPA) with a Bilateral Investment Treaty (BIT),
Australian food labelling laws: changes and complexities for foreign trade
28-Aug-2015 Holding Redlich
Changes to Australian food labelling laws provide consumers with an increased understanding of the origin of their food. The challenge Australia faces is to ensure compliance with foreign investment trade agreements.
Alphachat podcast: Joe Stiglitz on minimum wage, monetary policy, TPP and more
26-Aug-2015 FT Alphaville
Joseph Stiglitz, the Nobel Prize-winning economist, discusses TPP.
Ecuador’s experience with international investment arbitration
26-Aug-2015 South Centre
The brief reviews Ecuador’s experience with investment treaties and investor-state dispute settlement (ISDS). The paper explains the historical and geopolitical context of the decisions Ecuador has taken in regard to bilateral investment treaties (BITs) and ISDS.
The Trans-Pacific Partnership: copyright law, the creative industries, and Internet freedom
26-Aug-2015 Medium
A number of chapters of the TPP will affect the creative artists, cultural industries and internet freedom — including intellectual property, investment, and electronic commerce.
Congo Airways Airbus stuck at Dublin - Kinshasa alludes to «vulture fund subterfuge»
24-Aug-2015 Jeune Afrique
Pursuant to the ruling of an Irish court, Airbus A320 of Congo Airways, RDC’s new national airline company, is blocked at Dublin airport. The Congolese authorities are not excluding the hypothesis of “vulture fund subterfuge”.
Brooklyn will suffer with the passage of TPP
23-Aug-2015 Brooklyn Daily Eagle
TPP would stand above U.S. laws. That means a corporation could sue New York state if we pass a law they do not like.
Feds appealing NAFTA tribunal decision of Nova Scotia quarry project
20-Aug-2015 CBC
Canada is appealing a potentially expensive decision from a NAFTA tribunal, arguing the tribunal "exceeded its jurisdiction" when it upheld a claim from a New Jersey concrete company, Bilcon, that it was entitled to compensatory damages.
GE issues – The Trans-Pacific Partnership and our political will
20-Aug-2015 The Online Citizen
What TPP means for Singapore, politics and you.
TUC briefing on the Transatlantic Trade and Investment Partnership (TTIP)
20-Aug-2015 TUC
TUC Congress believes that the primary purpose of TTIP is to extend corporate investor rights’ and thus adopted a position of ‘outright opposition’ to TTIP.
Government mulling strong model BIT to revise investment pacts
19-Aug-2015 The Economic Times
Indian government had decided to come out with a new framework after several multinational firms invoked bilateral investment protection agreements.
TTIP/TAFTA et ses investisseurs tout-puissants expliqués en moins de 4 minutes
19-Aug-2015 Campact.de
L’ISDS permet aux entreprises de traîner les gouvernements devant des tribunaux secrets privés. La facture incombera au contribuable européen.
FIPA license to treat Canadians
19-Aug-2015 The News Review
The Canada-China Foreign Investment Promotion and Protection Agreement (FIPA), ratified in 2014, is a license to be unfair to Canadians.
Why Argentina’s petition to vacate an wward in AWG Group Ltd v. Republic of Argentina matters for future arbitrations
18-Aug-2015 JD Supra
Argentina filed with the U.S. District Court for the District of Columbia a petition to vacate an UNCITRAL arbitration award, which could have broader implications for determining partiality of arbitrators.
Canada-China trade pact puts our sovereignty at risk
15-Aug-2015 The Vancouver Sun
In his new book Gus Van Harten argues that FIPA shows that Canada can be too eager to compromise its economy, long-term, in the hope of a quick buck now.