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.

CCPA | 11-Jun-2025
Le gouvernement canadien ne devrait pas mettre en œuvre l’accord de libre-échange récemment signé avec l’Équateur, car cet accord risque de faciliter les atteintes à l’environnement et aux droits humains.
CCPA | 11-Jun-2025
The Canadian government should not implement the recently-signed free trade agreement with Ecuador because the agreement’s potential to facilitate environmental and human rights abuses.
Amelia Rueda | 11-Jun-2025
La empresa EBI, dedicada al manejo de residuos, inició un proceso de arbitraje internacional contra el Estado costarricense bajo el TBI Costa Rica-Canadá, en relación al desarrollo de un proyecto de relleno sanitario en Turrúcares, Alajuela.
Diario Panorama | 10-Jun-2025
AES había reclamado US$1814 millones en el CIADI, argumentando que el país violó el Tratado Bilateral de Inversiones (TBI) con Estados Unidos.
Criterio | 10-Jun-2025
EE.UU. recordó que el CAFTA-DR impone un plazo de tres años para presentar reclamos desde que el inversionista conoce el hecho y el daño, y que exceder ese límite puede llevar al rechazo del caso por falta de jurisdicción.
The Economic Times | 6-Jun-2025
The BIT has calibrated the Investor-State Dispute Settlement mechanism with mandatory exhaustion of local remedies, thereby, providing investors alternate dispute resolution mechanism.
Energy News | 6-Jun-2025
Le gouvernement espagnol a effectué un premier paiement dans le cadre d’un arbitrage international, en règlement d’un jugement datant de 2021 concernant la modification des incitations fiscales offertes aux investisseurs dans les énergies renouvelables.
Bloomberg | 5-Jun-2025
The Spanish government made its first payment as a result of an arbitration decision in 2021 around the country’s move to change investor incentives tied to renewable energy projects, following a number of lengthy legal battles between Spain and various creditors.
Baltic Times | 5-Jun-2025
In late 2021, RSE filed a lawsuit against Latvia, claiming that the amendments made to the electricity support regulation between 2012 and 2016 violated international obligations.
Latham & Watkins | 5-Jun-2025
The landmark decision protects Croatia from defending against duplicative claims brought by investor.