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.

The Straits Times | 25-Sep-2019
The Bilateral Investment Treaty on the Promotion and Protection of Investments between Singapore and Myanmar aims to promote greater investment flows between the two countries.
CADTM | 24-Sep-2019
The signing of an investment treaty involves a unilateral loss of sovereignty on the part of the host state, which is ultimately deemed necessary to attract foreign capital.
Lauge Poulsen | 23-Sep-2019
Western architects of the investment regime expected the treaties to play a standard-setting role to be used in informal bargaining with host states.
OpenEXP | 23-Sep-2019
The Energy Charter Treaty is a multilateral agreement that grants binding protection for foreign investors and includes also binding provisions for free trade and freedom of transit of energy materials and products.
EJIL: Talk! | 23-Sep-2019
South Africa makes clear that in its view, procedural reform is not enough. A wider agenda that includes substantive issues is needed.
Euractiv | 23-Sep-2019
The EU and its member states should collectively withdraw from the Energy Charter Treaty, which protects fossil fuel investments.
IISD | 20-Sep-2019
This claim to the long series of cases arising out of Italy’s reform of its scheme of incentive tariffs for solar energy.
IISD | 20-Sep-2019
Cette affaire vient élarger la longue liste d’affaires découlant de la réforme menée par l’Italie de son mécanisme d’octroi de tarifs préférentiels dans l’énergie solaire.
Alternatives Economiques | 20-Sep-2019
Un nouveau cas de litige entre investisseurs étrangers et Etats se profile dans le cadre du Traité sur la Charte de l’énergie, à l’origine de nombreuses affaires qui ont défrayé la chronique en Europe.
Lexology | 19-Sep-2019
A federal court in Washington, DC has recognized and enforced a US$331 million arbitral award against Romania under an intra-EU BIT—notwithstanding the objection of the European Commission that the award is incompatible with EU law.