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 Tyee | 28-Feb-2017
FIPA means province could be blocked from improving care standards for residents.
The Hindu | 28-Feb-2017
But Ottawa’s stance on model investment treaty has New Delhi worried
L’Humanité | 27-Feb-2017
Le traité commercial entre l’Union européenne et le Canada prévoit que les litiges entre investisseurs étrangers et États soient jugés par une Cour spéciale. C’est dangereux pour nos lois, nos droits et notre Constitution. Explications et entretiens.
Sunday Guardian Live | 27-Feb-2017
There is no principled basis for EU’s demand of extending patent protection beyond the period of 20 years.
Desmog | 27-Feb-2017
The trade deal could facilitate energy companies suing Member State governments when environmental policies threaten their profits.
In Cyprus | 25-Feb-2017
Greek investors claim that they were discriminated against and lost millions in the bail-in of Cypriot bank deposits some four years and have launched legal action against Cyprus.
Disputing Blog | 25-Feb-2017
An arbitration tribunal has ordered Ecuador to pay a ConocoPhillips’ wholly-owned subsidiary nearly $380 million and ordered the company to pay Ecuador $42 million in response to the Republic’s counterclaim
CDR | 24-Feb-2017
The criticism of ‘double hat’ – arbitrator and counsel – is legitimate and needs to be addressed.
Ecojustice | 23-Feb-2017
What makes ISDS divisive is it exposes governments to potentially expensive private arbitration by foreign corporations who feel that environmental protection measures impede their business.
Lexology | 23-Feb-2017
The latest award on jurisdiction conflicts with the ruling of a Dutch court which overturned an earlier award of US$50 billion in favour of the former majority shareholders of Yukos.