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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.

Joseph Stiglitz, Jayati Ghosh, Zephyr Teachout, Dani Rodrik, and 295 law and economics professors urge Biden to terminate ISDS provisions in existing US trade and investment agreements
15-Apr-2024
As US law professors and economics professors deeply committed to the rule of law and economic well-being both domestically and globally, we strongly urge you to remove ISDS provisions from existing US trade and investment agreements.
Libya’s sovereign wealth fund launches €15bn arbitration drive against Belgian prince
15-Apr-2024 The National
It is presumed the claim is on the basis of the bilateral investment treaty between Libya and Belgium.
Podcast: The secret world of investor courts
12-Apr-2024 Global Justice Now
The Secret World of Investor Courts is a podcast made by the Global Justice Now Youth Network, exploring corporate power, colonialism and climate justice.
How a documentary film can help UNCITRAL Working Group III think through ISDS reform
12-Apr-2024 EJIL:Talk!
A documentary film offers a powerful illustration of the ways in which ISDS can impact third parties, exacerbate inequalities, and reinforce power imbalances.
Berkeley to take uranium mine dispute with Spain to arbitration
12-Apr-2024 Mining.com
Australian mining group Berkeley Energia will take its dispute with Spain to international arbitration after the country refused to give final approval to a uranium mine near the city of Salamanca.
S. Korea ordered to pay Mason Capital 43.8 bln won in investor-state suit
12-Apr-2024 Yonhap
An international tribunal ordered South Korea to pay 43.8 billion won (US$32 million) in compensation to US-based hedge fund Mason Capital in an investor-state suit the company filed over a controversial 2015 merger of two Samsung affiliates
100 organizations from around the world call on Ecuador to defend its sovereignty against international arbitration: No to ISDS!
10-Apr-2024 International organisations
Various organisations express their support for Ecuador’s rejection of international arbitration tribunals in a gesture of international solidarity.
MEPs support exit from treaty allowing big oil to sue governments over climate action
10-Apr-2024 Euronews
In a decisive committee vote, MEPs have supported the European Union’s exit from the Energy Charter Treaty over concerns its global investor-state dispute settlement system has been weaponised to sue governments over climate policy. Image d’illustration.
PMO asks commerce min to examine model text of bilateral investment treaty
9-Apr-2024 Business Standard
India’s Prime Minister’s Office (PMO) has asked the commerce ministry to examine the model text of the bilateral investment treaty and suggest modifications to further improve the ease of doing business.
Serbia to face transport investment arbitration
8-Apr-2024 CDR
The subject of the arbitration is given as ‘transportation fare collection services’, and invokes the 2001 bilateral investment treaty between Turkey/Türkiye and Yugoslavia as the basis for the claim.
Telenor seeking payout from Myanmar junta in secret arbitration
5-Apr-2024 Myanmar Now
A panel has been formed in Singapore to hear Telenor’s claims for compensation from Myanmar over money lost in its controversial Myanmar exit.
Pakistan shares FTA draft with GCC to pave way for Reko Diq accord
5-Apr-2024 The News
The caretaker government had ratified the draft of FTA, including the Bilateral Investment Treaty (BIT).
The lucrative world of international arbitration
4-Apr-2024 Le Monde Diplomatique
International investment agreements enable corporations to sue foreign governments for loss of profits. The sums they demand can be so huge that even the threat of a claim is enough to make governments cave in.
Switzerland seeks bilateral investment treaty with India
4-Apr-2024 The Times of India
Switzerland pursues a new bilateral investment treaty with India post EFTA deal, addressing model treaty concerns.India remains reluctant on concessions, focusing on market.
Trade and climate internationalism
2-Apr-2024 The Ecologist
Trade deals are used to extract valuable resources from the Global South - but a recent victory shows we can make a difference.
Sánchez, Doggett call for Biden Administration to reform the CAFTA-DR trade agreement
26-Mar-2024 Linda Sánchez
Congresswoman Linda T. Sánchez and Congressman Lloyd Doggett led 45 of their colleagues in calling on the Biden Administration to work to remove the Investor-State Dispute Settlement mechanism from the Central America – Dominican Republic Free Trade Agreement.
Commission presents parliament with Energy Charter Treaty exit plan
22-Mar-2024 Euractiv
The European Commission’s plan to withdraw the bloc from the Energy Charter Treaty while allowing member states the right to remain if they choose was presented to Parliament.
Panama update
21-Mar-2024 Orla Mining
Orla Mining is exploring all legal remedies available to protect its investments in respect of the Cerro Quema Project. The company intends file a notice of intent to arbitrate under the Panama-Canada Free Trade Agreement.
Honduras ratchets up battle with crypto-libertarian investors, rejects World Bank court
20-Mar-2024 The Intercept
After the Honduran president repealed a law granting unfettered authority to outside investors, the cryptoquistadors took the dispute to a World Bank arbitration court.
Economists: "The era of corporate supremacy in the international trade system is coming to an end"
20-Mar-2024 Progressive International
85 leading economists “commend” Honduras’ decision to quit international court that prioritises “corporate profit” over “sustainable development”.