bilaterals.org logo
bilaterals.org logo

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.

Leaked investment chapter of the TPP: broad similarities to the US Model BIT, a nod to the ongoing debate and some outstanding issues
2-Apr-2015 Lexology
The leaked investment chapter of the TPP looks very similar to the 2012 US Model BIT, with a few notable additions and changes to the text.
International investment law and the [human right to] land
1-Apr-2015 HIC-HLRN
In many cases, international investment agreements have the purpose and/or effect of hijacking the international human rights system.
Company vs country
31-Mar-2015 BBC
Resistance is mounting against the booming and lucrative business of multinational companies suing governments.
India: Govt, legal experts differ on Cairn compensation demand
30-Mar-2015 Business Standard
Cairn Energy Plc’s demand for compensation from India for the Rs 10,200 crore tax notice slapped on Cairn India earlier this month under the ambit of the India-UK Bilateral Investment Promotion and Protection Agreement (BIPA) has divided those in the government and those outside it.
CBDT on Cairn: Tax matters not covered under UK-India BIT
30-Mar-2015 CNBC
According to sources ay India’s Central Board of Direct Taxes, tax matters are not covered under UK-India bilateral Investment treaty (BIT).
17 April 2015: International Day of Peasant and Farmer Struggle against Transnational Companies and Free Trade Agreements
30-Mar-2015 La Via Campesina
This April 17th 2015, La Via Campesina will focus its mobilizations on the impacts of Transnational Corporations and Free Trade Agreements on peasant and small-scale agriculture and national food sovereignty
NZ-Korea FTA Select Committee provides Kiwis chance to break silence on ISDS
30-Mar-2015 Scoop
The Foreign Affairs Defence and Trade committee is now accepting public submissions on the NZ-Korea Free Trade Agreement, providing Kiwis with a rare chance to break the silence on the controversial investor-state dispute settlement provisions in that agreement and in the Trans-Pacific Partnership Agreement, according to It’s Our Future NZ.
ANALYSIS: India invites comments on draft model investment treaty; text offers radical departure, and calls to mind Norway’s past efforts at revision
30-Mar-2015 Investment Arbitration Reporter
One of the most striking features of the draft model is its jettisoning of the fair and equitable treatment standard in favor of a standard — egregious or outrageous behaviour — that hearkens back to legal touchstones of an earlier era.
Chevron’s "fight it out on the ice" strategy for Ecuador case is slipping, fast
28-Mar-2015 Huffington Post
In Chevron’s massive international arbitration directly against the government of Ecuador, it has gotten everything it has asked for from the panel of arbitrators — until last week.
Leaked Pacific trade pact draft shows investment carve-outs sought
27-Mar-2015 Reuters
Australia’s medicine subsidies, Canadian films and culture, and capital controls in Chile would be carved out from investment protection rules being negotiated in a Pacific trade pact, according to a draft text released by Wikileaks on Wednesday.
Secret Trans-Pacific Partnership Agreement (TPP) - Investment Chapter
26-Mar-2015 WikiLeaks
WikiLeaks annonces its release of the "Investment Chapter" from the secret negotiations of the TPP (Trans-Pacific Partnership) agreement.
Cairn Energy seeks compensation from India on tax demand; Cairn India stock gains
25-Mar-2015 Economic Times
Cairn Plc is seeking compensation from the government of India for the steep fall in the value of its shares in Vedanta-controlled Cairn India, which it is not allowed to sell until it settles a controversial retrospective tax demand of $1.60 billion, under the UK-India Bilateral Investment Treaty.
NAFTA ruling in Nova Scotia quarry case sparks fears for future settlements
25-Mar-2015 Globe & Mail
A NAFTA arbitration panel has ruled against Canada in a claim by a US company that wanted to develop a quarry in Nova Scotia, although a dissenting member of the panel warned that the decision will be seen as a “remarkable step backwards” in environmental protection.
UK: MPs denounce government TTIP plans amid fears for NHS and public services
25-Mar-2015 The Guardian
A future government must be allowed to expand the NHS without facing legal challenge under a proposed new EU-US trade deal, according to a sharply critical report from an all-party committee of MPs.
"Investor-State Dispute Settlement promotes American values"
25-Mar-2015 Washington International Trade Association
Former US judge, arbitrator and president of the International Court of Justice says the ISDS system, currently under attack, reflects US law and enforces US leadership and therefore should be preserved.
Debunking USTR Public Affairs’ Memo on Investor-State Dispute Resolution
23-Mar-2015 Public Citizen
Questions and answers on investor-state dispute settlement (ISDS) that pertain to incorrect claims being made by the Office of the US Trade Representative.
Germany pledges to stand firm in US-EU TTIP trade talks
23-Mar-2015 Deutsche Welle
German Economy Minister Sigmar Gabriel has pledged to prevent any clauses in a US-EU trade deal that go against the ideals of his party, the Social Democrats - including protection clauses called for by the US.
Trans-Pacific Partnership: Trade deal could force Australian Government to spend millions to subsidise medicines, expert warns
19-Mar-2015 Australia Broadcasting Corporation
Australia’s primary negotiator on medicines for the US-Australia FTA, Dr Ruth Lopert, warns that the TPP could force the Australian Government to spend hundreds of millions of dollars to subsidise medicines.
Transparency in investor-state arbitration
18-Mar-2015 Lexology
The UN Convention on Transparency in Treaty-Based Investor-State Arbitration has been opened for signature.
Africa steps up dispute resolution
16-Mar-2015 The Southern Times
With increased levels of investment into Africa, the number of legal disputes in the continent is also on the rise.