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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.

Panthera subsidiary notifies Indian government over Bhukia dispute
3-Jan-2024 Morning Star
Panthera, a gold exploration company with assets in India, said that its subsidiary Indo Gold Pty Ltd had issued a notice of dispute to the Indian government over the latter’s breach of the 1999 Australia-India bilateral investment treaty.
Ecuador says it has won international arbitration, will avoid $198 million payment to Worley
3-Jan-2024 Reuters
Ecuador’s procurator said the country has won an international arbitration and will not be liable to pay $198 million to engineering firm Worley International Services over oil project contracts.
Tanzania commits to pay Indiana Resources $118 million if ...
29-Dec-2023 The Citizen
Tanzania has made a commitment to pay Australian mining firm Indiana Resources Limited and its subsidiaries $118 million if the country loses in the final decision of the annulment application.
Canada pension fund Caisse, Mexico pause arbitration to seek energy resolution
21-Dec-2023 Reuters
Canadian pension fund Caisse de depot et placement du Quebec and the Mexican economy ministry have temporarily suspended an international arbitration procedure to try to reach an agreement.
Pakistan wins legal battle against Tuwairqi Steel at international court
20-Dec-2023 The Express Tribune
Pakistan has emerged triumphant in the arbitration initiated by Tuwairqi Steel against the federation at the Permanent Court of Arbitration in The Hague, Netherlands.
Countries risk ’paying polluters’ billions to regulate for climate: UN expert
15-Dec-2023 France 24
An "explosion" of multibillion-dollar claims by fossil fuel and extractive firms through shadowy investment tribunals is blocking action on climate and nature.
LNG firm’s $20-billion lawsuit against Canada exposes NAFTA’s toxic legacy
15-Dec-2023 Canada’s National Observer
A company launched a record-breaking NAFTA lawsuit against Canada — confirming the dire threat that investor-state dispute settlement (ISDS) poses to bold climate action.
Why is Biden endorsing corporate colonialism in Honduras?
15-Dec-2023 LPE Project
The stakes for Honduras are not simply the billions of dollars otherwise destined for health, housing, and education. They are the very existence of Crawfish Rock: the past and future of the families who have inhabited the island for centuries.
Biden should abolish secretive corporate tribunals that bypass the law
13-Dec-2023 The Nation
A legal regime known as investor-state dispute settlements erode environmental regulation and increase fossil fuel industry profits.
Settlement agreement with Ozpak concludes
13-Dec-2023 The Express Tribune
Pakistan concluded a settlement agreement with Ozpak, a Turkish company, in longstanding arbitration proceedings pending in the International Centre for Settlement of Investment Disputes.
Sarama Resources issues notice of intent to submit claims to arbitration
11-Dec-2023 Yahoo Finance
Sarama Resources Ltd, advises that it has formally notified the government of Burkina Faso, of the existence of an investment dispute between the Company and Burkina Faso in relation to the government’s withdrawal of the company’s rights to the Tankoro 2 Exploration Permit.
Pakistan moves closer to signing landmark trade agreement with GCC
4-Dec-2023 Dawn
Pakistan and Saudi Arabia have reached a consensus on the investment modalities, paving the path for the ratification of a much-awaited free trade agreement with the Gulf Cooperation Council.
Can existing international agreements on ‘investment facilitation’ advance sustainable development, climate action, and human rights?
1-Dec-2023 CCSI
Terminating investment treaties and withdrawing advance consent to ISDS would allow governments to clear the path from problematic treaties centered on investment protection and ISDS, which in practice benefit unsustainable investment.
When investors subvert states
1-Dec-2023 Project Syndicate
The ongoing lawsuit brought against Honduras by an American company underscores the unjust and undemocratic nature of the investor-state dispute settlement system.
Dispute settlement mechanisms: BoI asked to show ‘flexibility’
30-Nov-2023 Business Recorder
These directions were issued after threadbare discussion with Saudi Arabia and Qatar which are insisting on the option of international arbitration in a template of Bilateral Investment Treaty.
Who knew Queensland’s richest man is a foreign investor?
30-Nov-2023 The Australia Institute
Clive Palmer’s controversial legal strategies challenge Australia’s trade agreements and environmental laws, and have profound implications for global climate action.
Investor-state dispute settlements: a hidden handbrake on climate action
30-Nov-2023 IIED
To achieve the Paris Agreement’s climate goals, states must move away from fossil fuels. But investor–state dispute settlement (ISDS) — a system that enables companies to take states to international arbitration — can increase the cost of this transition.
First Quantum warns of arbitration as Panama weighs copper contract
27-Nov-2023 Reuters
Canada’s First Quantum intends to start arbitration against Panama, the Central American nation’s trade ministry and the company said, as Panama’s top court considers annulling a copper contract that opponents call unfair.
Honduras is fighting back against corporate colonialism
24-Nov-2023 Tribune
American billionaires are suing the Honduran government for blocking the creation of a libertarian city-state in the country. If they win, it will be a devastating victory for corporate colonialism over democracy.
Abuja agrees to settlement with ENI over OPL 245
24-Nov-2023 Africa Intelligence
The battle over block OPL 245 between Nigeria and Italian major ENI was suspended on 16 November.