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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.

Winshear delivers notice of intent to submit a claim to arbitration under Canada-Tanzania agreement for the promotion and reciprocal protection of investments
13-Jan-2020 GlobeNewswire
The dispute arises out of certain acts and omissions of the United Republic of Tanzania, relating to the SMP Gold Project, says the company.
Pakistan moves US court to stop over $6bn fine in Reko Diq case
10-Jan-2020 DAWN
Pakistan has asked a US federal court to pause an Australian copper company’s bid to enforce a $6 billion arbitral award while it looks to have the award nixed.
How ISDS corporate privileges risk to undermine community struggles
9-Jan-2020 CEO
Inspiring people fought toxic gold mines, dirty oil drilling and greedy luxury real estate projects. Now, costly investor-state dispute settlement (ISDS) lawsuits risk to reverse their community victories.
Ncell backed by international tribunal in Nepal tax row
8-Jan-2020 Developing Telecoms
The ICSID has issued an interim order preventing Nepal’s government from collecting capital gains tax on Axiata’s acquisition of Ncell.
Agreement for the termination of bilateral investment treaties between the Member States of the European Union (EU draft, Nov 2019)
8-Jan-2020 IAReporter
As leaked by IAReporter
China’s new policy on foreign investment and the security of intellectual property
7-Jan-2020 Biopharmapress
Proper mandatory licenses will be exempt from claims for expropriation under the China BIT model.
Telenor’s legal notice through the eyes of int’l investment law
2-Jan-2020 Daily Star
Telenor, the principal investor of Bangladesh’s leading mobile phone operator Grameen Phone, has served a legal notice to the President of Bangladesh seeking arbitration.
Why don’t we just… wake up to the threat of ISDS?
2-Jan-2020 Big Issue North
Commercial ISDS adjudications trump democratically established laws and controls.
Ncell pays Rs 4.5 billion of its total CGT dues
2-Jan-2020 Himalayan Times
The ICSID had issued an interim order directing the government not to take any steps to enforce its decision to collect the outstanding capital gains tax.
Govt told not to collect CGT from Ncell
20-Dec-2019 Himalayan Times
A US-based international court issues interim order directing the Nepal government not to impose capital gains tax on Ncell buyout deal for the time being.
Lupaka files notice of intent to submit a claim to arbitration under Canada-Peru FTA
17-Dec-2019 GlobeNewswire
The dispute is related to the Invicta gold mine project and the blockade erected by the community of Parán in October 2018 wherein it prevented any access to the mining site.
People power in Romania stopped a mining project. now the corporation is suing for billions of dollars
17-Dec-2019 Inequality.org
Romanian and US environmental justice activists demonstrated in Washington, DC, outside a World Bank tribunal hearing on a case brought by Canadian-based Gabriel Resources.
Beyond repair? The Energy Charter Treaty
16-Dec-2019 FOEE
An obscure investment agreement, the Energy Charter Treaty, threatens to undermine bold climate action to transform Europe’s energy system.
Romania agrees to pay large compensations to Romanian-Swedish investors
16-Dec-2019 Romania Insider
The Government took this decision to unlock the accounts of Romania’s air control company Romatsa, frozen by the Miculas.
Sweden sued for $1.8 billion due to environmental regulation
13-Dec-2019 Handelsgranskaren
For the first time, Sweden has recieved a notice of arbitration for banning the exploration and mining of uranium.
US banned climate from UK trade talks
11-Dec-2019 The Ecologist
The US has banned any mention of climate change in US-UK trade talks.
Korean company starts arbitration against India
10-Dec-2019 Economic Times
South Korean state owned power utility Kowepo has begun international arbitration proceedings against India in Singapore for not honouring a fuel supply commitment to its Maharashtra power plant.
EU governments under pressure to quit Energy Charter Treaty
10-Dec-2019 Forbes
Climate campaigners are demanding that European Union countries pull out of the treaty unless they can negotiate an end to the pact’s investor-state dispute mechanism.
Open letter on the Energy Charter Treaty (ECT)
9-Dec-2019 ECT’s Dirty Secrets
We – 278 environmental, climate, consumer, development, and trade related civil society groups, as well as trade unions – believe that the ECT is incompatible with the implementation of the Paris Climate Agreement.
Civil society seeks reforms to stem trade suits losses
9-Dec-2019 The East African
Civil society groups are now calling on governments to reform their investor state dispute settlement because “it is being unfairly used by investors to sue states for millions of dollars.”