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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.


Al Habtoor group issues a notice of an investment dispute against Lebanon
Emirati conglomerate Al Habtoor Group served a notice of an Investment Treaty Dispute against the Lebanese Republic in connection with Lebanon’s breaches of the Bilateral Investment Treaty between the United Arab Emirates and Lebanon.
USD 12 billion dispute decided in Tunisia’s favour
A wrangle over a shareholding in a Tunisian bank which dates back to the 1980s has finally been resolved in arbitration.
What happens when a country says ‘no’ to mining?
The battle between a Canadian mining company and Panama over one of the richest copper-gold mines in the Americas is headed to international arbitration – exposing Canada’s double standard when it comes to promoting free trade in the Global South.
Panama sued by 3+ mining companies after supreme court rules mining contract unconstitutional
Panama is facing at least three Investor-State Dispute Settlement cases from mining investors who claim that their investments have been affected by the decision.
ABH Holdings S.A. brings $1 billion claim against Ukraine
ABHH seeks full compensation for the expropriation of Sense Bank by the Ukrainian authorities through enforced nationalisation.
Panthera subsidiary notifies Indian government over Bhukia dispute
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
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 ...
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
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
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
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
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?
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
A legal regime known as investor-state dispute settlements erode environmental regulation and increase fossil fuel industry profits.
Settlement agreement with Ozpak concludes
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
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
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?
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
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’
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.