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.

Huffington Post | 4-Mar-2016
Corporations can still sue governments over public policy decisions they don’t like but the real lesson from the ISDS reforms, in fact, is that public opposition and political mobilization can change things.
Le Monde | 3-Mar-2016
Depuis de nombreuses années, les institutions internationales affirment qu’un « soutien mutuel » entre commerce et climat est possible. Mais l’entreprise multinationale du secteur énergétique Transcanada vient d’ébranler quelque peu cette croyance.
CADTM | 1-Mar-2016
Los bonos, cuyo pago reclaman los “fondos buitre”, tienen su origen en el fraude, y eso no se modifica por más que la deuda inicial haya sido convertida, Plan Brady de 1992 mediante, en bonos de deuda pública, en un intento de desligarla de su origen delictivo.
Public Services International | 1-Mar-2016
New report shows that trade and investment deals like RCEP will further adversely affect the ability of the government of India to tax corporations effectively and fairly.
EU Observer | 1-Mar-2016
Despite all the talk of reform from commissioner Malmstroem, the threat to democratic decision-making is as alive and dangerous as ever.
South Centre | 1-Mar-2016
In African countries, the expansion of international investment agreements could carry significant risks to policy space and policy tools necessary for industrialization and development.
European Commission | 29-Feb-2016
The European Commission and the Canadian Government have agreed to include a new approach on investment protection and investment dispute settlement in CETA.
Commission européenne | 29-Feb-2016
La Commission européenne et le gouvernement canadien sont convenus d’inscrire une nouvelle approche concernant la protection des investissements et le règlement des différends en matière d’investissements dans le CETA.
Romania Journal | 29-Feb-2016
Brothers Viorel and Ioan Micula won the lawsuit against the Romanian state at the International Centre for Settlement of Investment Disputes (ICSID), and were awarded USD 200 million in damages.