Europe

European Union (EU) member states have signed over 1300 investment treaties with third countries, in addition to some 200 between EU members. Non-EU European states are party to over 500 treaties. Most of these contain investor-state dispute settlement (ISDS) provisions, which enable foreign corporations to take ISDS claims against states if they deem their profits or potential investment to be affected by new laws or changes in policy.

The EU has ratified four agreements with an ISDS mechanism: the Energy Charter Treaty (ECT), to which 53 European and Central Asian countries are party, the Comprehensive Economic Trade Agreement (CETA) with Canada, and agreements with Vietnam and Singapore. Only the ECT has been fully in force. The ISDS provisions in the three others will be implemented after all member states have ratified them.

These three deals also include a revised ISDS mechanism created by the European Commission, known as the investment court system. Many critics say that this new system is largely window-dressing and does not address the core of the problem behind investor-state dispute measures.

In 2015, the European Commission asked the EU member states to terminate their intra-EU bilateral investment treaties (BITs), arguing they are incompatible with EU law, which was confirmed by the Court of Justice of the European Union in its “Achmea” decision.

As of April 2020, the number of intra-EU ISDS disputes amounted to 170, approximately 17% of all cases globally, 76 of which having been brought under the ECT.

Overall investors from European countries have initiated over 600 ISDS cases, half of which are against non-European states. European countries have been targeted in about 350 cases. Grouped together, investors from EU member states have launched the majority of total disputes (over 400).

Spain, the Czech Republic, Poland, Russia and Ukraine have been among the ten most frequent respondent states, while the Netherlands, the United Kingdom, Germany, Spain, France, Luxembourg, Italy and Switzerland have been among the ten most frequent home states of the investor.

The most well-known cases include:

Yukos (Isle of Man) vs. Russia: US$50 billion awarded in 2014 to majority shareholders of the oil and gas company (ECT invoked).

Eureko (Netherland) vs. Poland: case settled in 2005 for about €2 billion in favour of the investor, a large European insurance company (Netherland-Poland BIT invoked).

Ceskoslovenska Obchodni Banka (Czech Republic) vs. Slovak Republic: €553 million awarded in 2004 to the investor, one of the largest commercial banks in the Czech Republic (Czech Republic-Slovak Republic BIT invoked).

Photo: War on Want

(April 2020)

Challenge | 5-Sep-2023
Dans le litige qui l’oppose aux autorités marocaines, l’entreprise française de gestion des déchets, Pizzorno Environnement demande jusqu’à 50 millions d’euros en guise de réparation.
WNDB | 5-Sep-2023
The request for arbitration charges that North Macedonia expropriated Amadeus’ investment in a hotel and commercial center in Skopje, all violations of the North Macedonia-Albania bilateral investment treaty, and seeks a damage award of at least $110 million.
CIAR Global | 31-Aug-2023
El grupo español Abertis Infraestructuras ha presentado una demanda de arbitraje contra Argentina ante el Centro Internacional de Arreglo de Diferencias relativas a Inversiones (CIADI) por las concesiones de autopistas de dos subsidiarias que han abierto un arbitraje ante la Cámara de Comercio Internacional (CCI).
The Indian Express | 28-Aug-2023
As India and the UK inch closer towards finalising a free trade agreement, the contours of the much-debated and contentious bilateral investment treaty are likely to be finalised around the same time as the FTA.
Le Vif | 24-Aug-2023
Faute de consensus intra-belge, la Belgique se refuse toujours à quitter le TCE, en dépit de sa dangerosité, du départ de dix pays européens (dont tous ses voisins) et de son incompatibilité avec le droit de l’Union européenne.
CBC | 21-Aug-2023
Owner of aircraft parked at Toronto’s airport invoking 1989 bilateral investment treaty.
Climate Change News | 16-Aug-2023
The Energy Charter Treaty, which Spain is trying to leave, protects investments in fossil fuels and in renewables.
Veblen | 16-Aug-2023
La procédure d’arbitrage engagée par l’entreprise énergétique allemande RWE contre l’État néerlandais sur la base du traité sur la charte de l’énergie est irrecevable au regard du droit de l’Union européenne.
L’Economiste | 15-Aug-2023
Une entreprise française de gestion des déchets poursuit le Maroc au Centre international pour le règlement des différends relatifs aux investissements (CIRDI).
CIAR Global | 3-Aug-2023
Un tribunal alemán ha declarado que los países miembros de la Unión Europea pueden eludir el arbitraje del Centro Internacional de Arreglo de Diferencias relativas a Inversiones (CIADI) presentado al amparo del Tratado de la Carta de la Energía (TCE).