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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.

Australian legal experts call for swift removal of ISDS
12-Jul-2024 AFTINET
62 Australian lawyers and legal scholars have issued an open letter urging the Australian government to swiftly implement its policy of excluding Investor-State Dispute Settlement provisions from current and future trade and investment agreements.
S. Korea appeals tribunal order to pay $32m to US hedge fund
12-Jul-2024 The Korea Herald
South Korea has filed an appeal against a ruling by a Hague-based arbitration court ordering it to pay $32 million to a US hedge fund to compensate for its intervention in the merger of two Samsung affiliates in 2015.
World Bank arbitration tribunal dismisses Emirati oil firm’s EGP 3 bn case against Egyptian government
9-Jul-2024 Enterprise
The World Bank’s ICSID dismissed claims brought against the Egyptian government by UAE-based CTIP Oil & Gas Investment Limited.
SAMIR oil refinery: Morocco rejects $2.7 billion compensation claim from Saudi firm
9-Jul-2024 Morocco World News
Morocco dismissed the claims, maintaining that the businessman was engaging in blackmail and illegal maneuvers to obstruct the liquidation process of Morocco’s sole oil refinery, Samir.
Gabriel Resources appeals ICSID ruling on Rosia Montana gold mining project in Romania
9-Jul-2024 Romania-Insider
Canadian company Gabriel Resources filed an appeal against the decision of the Washington Arbitration Court by which Romania won the case in the Roșia Montană gold mining project, requesting its annulment.
US company battles Nicaragua in arbitration tribunal
8-Jul-2024 Havana Times
The US company is appealing under CAFTA (Central American Free Trade Agreement) for the invasion of its property in Jinotega and the destruction of its avocado and other orchards.
Orla Mining files US$400 million arbitration request in Panama
5-Jul-2024 Resource World
Orla Mining Ltd. has filed a request for arbitration against the Government of Panama under the Canada-Panama Free Trade Agreement regarding the cancellation of the Cerro Quema mining concession in late 2023.
EU notifies exit from Energy Charter Treaty and puts an end to intra-EU arbitration proceedings
2-Jul-2024 European Commission
The EU has taken the final step to exit the Energy Charter Treaty; the Union and its Member States have also reached a formal agreement to put an end to the continuation of intra-EU arbitration proceedings under the ECT.
Infinito Gold withdraws Crucitas mining claim against Costa Rica
1-Jul-2024 The Tico Times
The Canadian mining company Infinito Gold has decided to drop a claim against Costa Rica for the failed Crucitas project in Cutris de San Carlos.
Armenian government faces $1.2 billion lawsuit from foreign investor
1-Jul-2024 Azatutyun
A Cyprus-registered shell company that owns a minority stake in Armenia’s largest mining enterprise has filed a $1.2 billion lawsuit against the Armenian government.
China’s Ganfeng files arbitration against Mexico over lithium deposit
25-Jun-2024 Reuters
China’s Ganfeng and two of its units aiming to develop a lithium project in Mexico registered an arbitration case against the Mexican government over the mining concession.
Oil giant MOL initiates arbitration process against Croatian state
24-Jun-2024 Hungary Today
MOL has filed a new arbitration case with the International Centre for Settlement of Investment Disputes against the Croatian state.
The India-EFTA deal: A model for developing countries
21-Jun-2024 South Centre
Governments are shifting from investor-state dispute mechanisms to treaties that encourage and ease investment.
How investment treaties undermine the voices of local communities
20-Jun-2024 Erasmus Magazine
Dispute settlements in international investment law protect the rights of companies. However, they suppress the voice of local communities, as Stephanie Triefus found in her PhD research.
Romania wins EUR 330 mln ICSID arbitration lawsuit filed by owners of bankrupt insurer Astra
17-Jun-2024 Romania-Insider
Romania won the litigation case filed by the owner of the bankrupt insurer Astra Asigurari, Dutch-based Nova Group Investments controlled by the Adamescu family, according to a note published by the Romanian Ministry of Finance.
The international system that pits foreign investors against indigenous communities
12-Jun-2024 Inside Climate News
Investor-state dispute settlement allows foreign investors to sue governments for billions. A new report highlights this international legal system harms Indigenous Latin Americans.
Almaden to pursue international arbitration against Mexico; moves to drop Mexican lawsuits
12-Jun-2024 Almaden Minerals Ltd.
Almaden Minerals Ltd. has taken the decision to submit its claims to arbitration against the United Mexican States under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
The corporate colonization of Latin America
11-Jun-2024 Public Citizen
How Investor-State Dispute Settlement (ISDS) harms indigenous communities.
Biden should end the fossil fuel industry’s secret weapon
11-Jun-2024 Counter Punch
There is an obscure mechanism by which fossil fuel companies maintain their global domination even as their products are destroying our futures.
ISDS courts have helped fossil fuel firms rake in $80 billion in public money
11-Jun-2024 Common Dreams
"ISDS is the secret weapon for fossil fuel companies against climate laws," said one advocate.