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.

The Independent | 3-Feb-2016
Other infamous examples of ISDS include Philip Morris, the tobacco giant, suing the Australian government for introducing plain cigarette packaging
The Globe and Mail | 1-Feb-2016
Despite Canada’s 14 new free-trade deals, Canada posted record trade deficits and shrinking exports throughout 2015 as prices for tangible commodities fell.
Mining | 1-Feb-2016
Eligible Canadian investors with property confiscated by the government of Kazakhstan are now legally entitled to international arbitration under the Canada/USSR BIT.
FFII | 1-Feb-2016
The European Commission today published the negotiated text of the EU – Vietnam FTA. The investment and investor-to-state dispute settlement (ISDS) chapter is not conform the European Parliament 8 July 2015 resolution.
El Watan | 29-Jan-2016
La chaîne qatarie Al Jazeera a annoncé poursuivre l’Egypte en justice devant un tribunal d’arbitrage dépendant de la Banque mondiale, l’accusant d’avoir «confisqué» ses investissements et causé «une perte d’au moins 150 millions de dollars».
Lawyer Herald | 29-Jan-2016
Pan-Arab TV Network Al-Jazeera is taking legal actions against Egypt over the closure of the Qatar-owned broadcast network and the harassments of its journalists has led to $150 million worth of losses.
Libération | 28-Jan-2016
Le groupe français Veolia a annoncé avoir demandé un arbitrage international contre la Lituanie, à laquelle il réclame plus de 100 millions d’euros d’indemnisation au titre d’un «traitement injuste et l’expropriation» de ses filiales.
The Baltic Course | 28-Jan-2016
France’s Veolia, which owns district heat supply companies in Lithuania, filed a suit worth a preliminary 100 million euros against Lithuania.
Equipo Jackson | 27-Jan-2016
¿Qué es el TPP? explicado con papas, kiwis y berenjenas
Reuters | 26-Jan-2016
An international arbitrator threw out claims from two investors protesting against Spain’s 2010 cuts to renewable energy subsidies, setting a potential precedent for other lawsuits pending.