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Investor-state dispute settlement (ISDS) is one of the greatest threats to the re-regulation of finance. ISDS empowers the very firms that financial regulation seeks to govern. These firms can bypass host country domestic courts and directly challenge domestic policies in a parallel system of justice.

Financial and non-financial firms have increasingly used ISDS provisions in trade agreements to challenge financial regulations and emergency financial stability measures.

Most well-known cases include:

• Investors vs. Argentina: When the country froze its utility rates and devaluated its currency in response to its 2001-2002 financial crisis, it was hit by over 40 lawsuits from investors, including Suez, Vivendi (France) and Anglian Water (UK). By January 2014, Argentina had been ordered to pay a total of US$980 million (various BITs invoked).

• Poštová Banka (Slovakia) & Istrokapital (Cyprus) vs. Greece: the Slovak bank and its Cypriot investor sued Greece on account of the restructuring of the country’s sovereign debt, after having bought Greek government bonds at a knockdown value. The investors lost the case. (Greece-Slovakia & Cyprus-Greece BITs invoked).

• Saluka (Netherlands) vs. Czech Republic: the Dutch investment corporation filed an ISDS dispute against the Czech government for not bailing out a private bank, in which the company had a stake, in the same way that the government bailed out banks in which the government had a major stake. The bailouts came in response to a widespread bank debt crisis. The investor was awarded US$236 million (Czech Republic-Netherlands BIT invoked).

(March 2020)

Un tribunal CIRDI rejette sa compétence face à l’abus de droit d’un investisseur ayant « réveillé » une société afin d’accéder à l’arbitrage contre le Cameroun
IISD | 4-Oct-2017
Le tribunal a estimé que la société requérante n’avait pas de siège social au Luxembourg et a fait preuve d’abus de droit pour « étayer la réalité de son siège social luxembourgeois »
Cameroon, finance | banking | taxes, investor-state disputes | ISDS, Luxembourg
An ICSID tribunal dismisses its jurisdiction as investor abused its rights by “reviving” a company to access arbitration against Cameroon
IISD | 4-Oct-2017
The tribunal ruled that the investor did not have a head office in Luxembourg and had abused its rights to “give the impression that it had a Luxembourg head office”
Cameroon, finance | banking | taxes, investor-state disputes | ISDS, Luxembourg
Cairn Energy reveals when final arbitration hearing over India tax dispute will be heard
Insider | 21-Sep-2017
The Edinburgh-based oil and gas explorer says both it and the Government of India have agreed a timetable for finalising document production, submissions and hearings.
energy, finance | banking | taxes, India, investor-state disputes | ISDS, UK
Vodafone versus India: A BIT of confusion
The Wire | 12-Sep-2017
By restraining a foreign investor from pursuing a claim under a bilateral investment treaty (BIT), the Delhi high court is coming in way of India’s accountability being tested under international law.
finance | banking | taxes, India, investor-state disputes | ISDS, Netherlands, UK
Cairn Energy adds $249 mn to compensation claim in retrospective tax dispute
Energy Infra Post | 12-Sep-2017
UK-based Cairn Energy Plc has increased its compensation claim by $249 million in the retrospective dispute case after the income tax department adjusted tax refund due to the oil explorer towards settlement of its tax liabilities.
energy, finance | banking | taxes, India, investor-state disputes | ISDS, UK
Affaire BFT : Le Cirdi condamne l’Etat tunisien
Kapitalis | 26-Jul-2017
Le Cirdi a rendu son verdict : l’Etat tunisien s’est rendu coupable de violation du droit de propriété d’ABCI sur la Banque franco-tunisienne (BFT)
finance | banking | taxes, investor-state disputes | ISDS, Netherlands, Tunisia
Affaire BFT : L’Etat moins confiant mais toujours opposé à un règlement amiable
Web Manager Center | 30-Jun-2017
La partie tunisienne ne veut pas d’un règlement amiable avec l’actionnaire majoritaire ABCI, même dans une phase ultérieure.
finance | banking | taxes, investor-state disputes | ISDS, Netherlands, Tunisia
World Bank unit starts Malampaya arbitration
Manila Standard | 27-Jun-2017
The ICSID designated the team that will hear Shell Philippines Exploration B.V.’s arbitration case against the Philippine government on Malampaya gas project’s corporate income tax issue.
energy, finance | banking | taxes, investor-state disputes | ISDS, Netherlands, Philippines
Affaire BFT: La Tunisie peut faire d’une pierre quatre coups
Kapitalis | 21-Jun-2017
L’Etat tunisiens a intérêt à négocier et à accepter une solution à l’amiable de son litige avec l’ABCI à propos de la BFT. Car le verdict du Cirdi risque d’être financièrement douloureux.
finance | banking | taxes, investor-state disputes | ISDS, Tunisia
Cairn tax dispute: I-T dept confiscates dividend, refund
PTI | 19-Jun-2017
The Income Tax Department has ordered coercive action against Cairn Energy of UK, including taking away over Rs 2,000 crore dividend and tax refund, to recover part of the Rs 10,247 crore retrospective tax.
energy, finance | banking | taxes, India, investor-state disputes | ISDS, UK

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