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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.

US-UK trade deal: Four things you might have missed, from food standards to climate commitments
3-Mar-2020 The Independent
The government has not ruled out imports of US agricultural products made to lower standards than in the UK.
Nepal’s bilateral investment treaties
2-Mar-2020 The Annapurna Express
Nepal has signed six bilateral investment treaties that can be described as first generation i.e. a template of BITs that were championed by inves­tor-friendly Western European countries
Naturgy leaves Egypt, ending its alliance with ENI in Unión Fenosa after almost 8 years of disputes
2-Mar-2020 The Corner
Naturgy has agreed with Eni and Egypt to end their dispute over Unión Fenosa (UFG), in which the Spanish and Italian firms own 50% each.
Appeal in ISDS: Appealing for the host state?
28-Feb-2020 South Centre
The basis of a claim in ISDS is always the applicable international investment agreement. There would always be differences and inconsistencies with an appellate mechanism.
Efforts under way to get Reko Diq case penalty cancelled: AG Khalid Jawed Khan
27-Feb-2020 DAWN
Attorney General Khalid Jawed Khan has said that Pakistan’s foremost effort in the Reko Diq mining case is to secure annulment of the $5.9 billion penalty.
UAH 460 mln AMCU fine is unreasonable, said the Director of Imperial Tobacco in Ukraine
26-Feb-2020 Interfax
Imperial Tobacco is working on available legal instruments of protection, including an international investment arbitration tribunal, to contest a fine imposed by Ukraine for anticompetitive concerted actions.
JCDecaux: €40m JCDecaux arbitration against the Czech Republic
26-Feb-2020 Street Insider
JCDecaux SA, an outdoor advertising, invited the Czech Republic to engage in discussions, as the first step in arbitration proceedings.
Carlyle vs. Morocco: Here are the Kingdom’s arguments to ICSID
26-Feb-2020 EN24
For the Kingdom, Carlyle did not justify the existence of investments in Morocco. The American group invokes the Morocco-United States free trade agreement while the contracts with Samir concern entities based in the Cayman Islands.
Naftogaz seeks nearly $8 bln for assets expropriated by Russia in Crimea
24-Feb-2020 New Europe
Ukraine’s joint stock oil and gas company Naftogaz said the group seeks nearly $8 billion of compensation for its assets expropriated by Russia in Crimea.
Exclusive: Chinese consortium Ecuagoldmining opens dispute with Ecuador over halted mine
21-Feb-2020 Reuters
Chinese mining consortium Ecuagoldmining has initiated a dispute with Ecuador’s government over a gold mining project that has been halted by objections from community activists.
New arbitration between Renco Group and Peru at the PCA
18-Feb-2020 Ciar Global
The arbitration between the US mining company Renco Group and Peru in relation to the metallurgical deposit in La Oroya was reopened, at the request of the mining company.
Court reinstates order for Russia to pay $50 bln over Yukos
18-Feb-2020 New York Times
A Dutch appeals court reinstated an international arbitration panel’s order that it should pay $50 billion compensation to shareholders in former oil company Yukos.
ExxonMobil, Canada enter landmark settlement in NAFTA arbitration
13-Feb-2020 Dallas Business Journal
As a long-running dispute between Exxon Mobil Corp. and the government of Canada reached a multimillion-dollar settlement, lawyers for ExxonMobil announced.
Odebrecht takes Peru to arbitration over failed gas pipeline investment
6-Feb-2020 Reuters
Brazil construction company Odebrecht SA has taken Peru to arbitration over a failed $2 billion investment in a gas pipeline.
Uber ready to take dispute with Colombia to international arbitration: regional manager
4-Feb-2020 Reuters
The ride-hailing firm said its initial calculations suggest damages from suspending its service in Colombia will exceed $250 million.
ICSID approves Pakistan’s review plea against $6bn Reko Diq fine
31-Jan-2020 Geo TV
The World Bank’s International Center for Settlement of Investment Disputes has approved Pakistan’s petition for a review in the Reko Diq case in which the country was slapped with a $6 billion fine.
Letter from Africa CSOs and trade unions to African delegates at the UNCITRAL round
31-Jan-2020
We civil society organizations and trade unions from the African continent express our concerns about the proposal presented by the European Union to establish a multilateral investment court and support further reaching reforms of ISDS.
Pakistan waives off over $1.26mn duty on Turkish company Karkey
30-Jan-2020 Business Recorder
Pakistan approved waiving off all port dues/charges amounting to Rs194,951,059 on 31-1-2020 or till the vessels leave the port accruing against Karkey.
CETA: Rights for Canadian multinationals
28-Jan-2020 SOMO
CETA strengthens the legal position of North American companies in the EU and exposes European governments and taxpayers to potential claims.
ISDS reform: Designing permanent institutions at Working Group III
27-Jan-2020 IELP
The UNCITRAL Working Group III turned squarely to designing permanent institutions: a standing appellate mechanism and a multilateral investment court (MIC).