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 Slovak Spectator | 7-Mar-2018
Slovakia will no longer have to compensate Achmea B.V., the shareholder of Union ZP health insurer, for €22 million in damage.
La Libre | 7-Mar-2018
Un arrêt de la Cour de justice de l’Union européenne (CJUE) donne de nombreux espoirs aux opposants du traité de libre-échange entre l’UE et le Canada (Ceta).
Le Devoir | 7-Mar-2018
Un tribunal d’arbitrage de l’Accord de libre-échange nord-américain (ALENA) a débouté une entreprise américaine de pâte à papier qui disait subir de la discrimination .
The Globe and Mail | 7-Mar-2018
A NAFTA tribunal rejects $250-million claim by Mercer International Inc. against the Canadian government.
GB Times | 7-Mar-2018
The International Court of Arbitration of the International Chamber of Commerce plans to offer its services for settling disputes among companies participating in China’s Belt and Road trade initiative.
Client Earth | 6-Mar-2018
ISDS is not only an unwelcome tool that allows multinational corporations to put pressure on public interest decision-making, it is also incompatible with EU law.
Tribunal de Justicia de la Unión Europea | 6-Mar-2018
Esta cláusula sustrae del mecanismo de control judicial del Derecho de la Unión los litigios que pueden versar sobre la aplicación o la interpretación de este Derecho.
Cour de justice de l’Union européenne | 6-Mar-2018
Cette clause soustrait au mécanisme de contrôle juridictionnel du droit de l’Union des litiges pouvant porter sur l’application ou l’interprétation de ce droit.
Court of Justice of the European Union | 6-Mar-2018
That clause removes from the mechanism of judicial review of EU law disputes which may relate to the application or interpretation of that law.
Latin America Herald Tribune | 5-Mar-2018
US Federal District Court Judge Richard J. Leon has ordered Rusoro’s $1.2 billion ICSID Expropriation award against Venezuela registered in the US.