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.

Le Monde Diplomatique | 25-Mar-2024
Les populations ignorent souvent que, grâce au mécanisme d’arbitrage international, les entreprises sont en mesure de mettre au pas les États, parfois au mépris des lois ou des Constitutions.
Pressenza | 25-Mar-2024
Existen políticas de atracción de inversión extranjera exitosas que varios Estados receptores de grandes flujos de inversión extranjera han sabido elaborar, manteniendo una distancia prudente con el mecanismo establecido por el CIADI.
Euractiv | 22-Mar-2024
La Commission européenne a présenté au Parlement européen son plan visant à coordonner la sortie de l’UE du Traité sur la Charte de l’énergie (TCE), tout en permettant aux États membres de rester parties s’ils le souhaitent.
Euractiv | 22-Mar-2024
The European Commission’s plan to withdraw the bloc from the Energy Charter Treaty while allowing member states the right to remain if they choose was presented to Parliament.
Orla Mining | 21-Mar-2024
Orla Mining is exploring all legal remedies available to protect its investments in respect of the Cerro Quema Project. The company intends file a notice of intent to arbitrate under the Panama-Canada Free Trade Agreement.
The Intercept | 20-Mar-2024
After the Honduran president repealed a law granting unfettered authority to outside investors, the cryptoquistadors took the dispute to a World Bank arbitration court.
Progressive International | 20-Mar-2024
85 leading economists “commend” Honduras’ decision to quit international court that prioritises “corporate profit” over “sustainable development”.
Infobae | 20-Mar-2024
Un total de 85 economistas de todo el mundo alabaron la decisión del Gobierno hondureño de retirarse del Centro Internacional de Arreglo de Diferencias Relativas a Inversiones del Banco Mundial. | 19-Mar-2024
Quel type d’arbitrage ISDS a été le plus utilisé par les entreprises ? Pourquoi est-il important de comprendre les différentes formes d’ISDS ?
Comment Central | 18-Mar-2024
Given the breadth of the policy areas that CPTPP accession will impact upon, how can UK membership have been subject to so little public debate? The answer is that the structures via which trade deals are negotiated and ratified are opaque and undemocratic.