The investor-state dispute settlement (ISDS) mechanism included in most trade and investment agreements gives foreign investors the right to challenge national laws and regulations related to agriculture and food, would these regulations represent an obstacle to their profits.
About 4% of all ICSID cases concerned agriculture, fishing and forestry issues as of end of 2019.
Most well-known cases include:
• Corn Products International (US) vs. Mexico: in 2009 US$58.4 million were awarded to the agribusiness producer of high fructose corn syrup (HFCS) – a derived sweetener linked to obesity. The investor challenged a government tax levied on beverages sweetened with HFCS (NAFTA invoked).
• Cargill (US) vs. Mexico: US$90.7 million awarded to the food-processing giant in 2009. The investor successfully challenged the abovementioned Mexican tax on HFCS (NAFTA invoked).
• Micula (Sweden) vs. Romania: US$250 million awarded to the multiple food-processing company in 2013, following the termination of incentives from the Romanian government in order to comply with EU law (Romania-Sweden BIT invoked).
Photo: Indymedia Mexico
(March 2020)
