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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.

Human rights in investor-State arbitration: The human right to water and beyond
26-Jan-2015 SSRN
This article analyzes the restrictive approach adopted by investor-State arbitration tribunals to human rights arguments raised by host States, as exemplified in the case of the human right to water
New weaknesses: Despite a major win, arbitration decisions in 2014 increase the US’s future exposure to litigation and liability
25-Jan-2015 CCSI
In 2014, the US again emerged the winner in investor-state arbitration. But it did suffer losses on a number of important issues, and those losses leave it more vulnerable to future claims, litigation costs, and potential liability.
European Commission’s clever ruse to introduce corporate sovereignty regardless of ratification votes in EU
25-Jan-2015 Techdirt
Even if CETA is rejected in Europe, claims under the ISDS chapter would still be possible up to three years afterwards for investments made during the provisional period.
Chevron’s battered image over Ecuador ecological disaster takes another hit in Davos
23-Jan-2015 Amazon Watch
Oil giant wins "lifetime achievement" award for efforts to evade justice
UK aims to pass law to ban branding on cigarette packs before May
22-Jan-2015 Reuters
Cigarette sales have dropped in Australia since plain packaging was introduced on Dec. 1, 2012, prompting Britain to act before its national election in May even as Australia battles international legal challenges from other countries and manufacturers.
India and bilateral investment treaties – are they worth it?
21-Jan-2015 Beyond Brics
Instead of relying only on a treaty-based approach, India should initiate domestic policy reforms to attract and protect foreign investments, argues Kavaljit Singh
Why UK parliament should scrutinise the UK-Ethiopia bilateral investment treaty (BIT)
21-Jan-2015 The Ethiopia Observatory (TEO)
If TTIP is bad, the UK-Ethiopia BIT is worse, says Lorenzo Cotula of IIED
Licensed to grab: How international investment rules undermine agrarian justice
20-Jan-2015 TNI
This brief analyses and illustrates how international investment rules thwart the struggle for land and food sovereignty.
Harvest asks for arbitration against Venezuela after failed sales
19-Jan-2015 Reuters
Harvest Natural Resources Inc, a Texas based oil and gas company, said on Friday it has filed an arbitration request against Venezuela before a World Bank tribunal to protect the value of its investment in the South American country.
ISDS mechanism should be ’consigned to the annals of history’
19-Jan-2015 The Parliament Magazine
"ISDS cannot be reformed and, like many archaic trade practices of the 18th century, should be consigned to the annals of history," argues Cecile Toubeau
France and Germany to form united front against ISDS
15-Jan-2015 EurActiv
The two countries are discussing throwing their combined weight behind a common position to exclude an Investor State Dispute Settlement mechanism from trade talks with the US
Canada being sued for billions under NAFTA investor protections
14-Jan-2015 Toronto Star
Study charts foreign corporations’ growing use of NAFTA’s investor protections to sue governments over environmental and economic regulations
Europeans don’t want investor state dispute settlement in trade agreements
14-Jan-2015 Stop TTIP and TTIP Unfairhandelbar
An overwhelming majority of Europeans has spoken out against ISDS in the Transatlantic Trade and Investment Partnership
Europe: The fear of arbitral tribunals
13-Jan-2015 Le Monde
The consultation on investor arbitration that the European Commission launched in Spring 2014 delivered an unambiguous verdict: today, public opinion does not want it.
EU report presented today: Consultation on investment protection in EU-US trade talks
13-Jan-2015 EU Commission
Today, the European Commission published its analysis of the almost 150,000 replies to its online consultation on investment protection and investor-to-state dispute settlement (ISDS) in the Transatlantic Trade and Investment Partnership (TTIP).
EU-US FTA (TTIP) - draft on dispute settlement (March 2014)
7-Jan-2015 European Commission
As published by the European Commission
Fixing BIPPA
25-Dec-2014 Financial Express
The definition of investment that the govt of India had agreed to while entering into BIPPAs is particularly problematic, writes Biswajit Dhar
Elizabeth Warren: Obama trade deal could undermine Wall Street reform
19-Dec-2014 Huffington Post
US Senator Elizabeth Warren on Wednesday warned that a major trade deal being negotiated by the Obama administration could hamstring Wall Street reform efforts.
Why is govt in a hurry to pay TCC for Reko Diq?
18-Dec-2014
The Nawaz Sharif government is in an unnecessary haste to settle and pay millions, possibly billions, of dollars as compensation for the Reko Diq gold and copper mines to a discredited and ousted Canadian-Chilean mining consortium, a decision if made may resemble the infamous circular debt payment of Rs500 billion in the early days of the PML-N government.
Investor-State Dispute Settlement: The TTIP’s Achilles heel?
18-Dec-2014 BEUC
A high level panel discussion on TTIP organised by BEUC, FOEE and AK Europa (video)