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.

Market Watch | 14-Jan-2016
The problem of TPP is with the “investment” chapter, which severely constrains environmental, health, and safety regulation, and even financial regulations with significant macroeconomic impacts.
Les Echos | 14-Jan-2016
L’accord sur le climat ou la création d’une nouvelle banque de développement par les BRICS l’an dernier vont influer sur 2016. Mais le vrai enjeu, moins médiatique, ce sont les accords commerciaux restrictifs qui s’annoncent.
El Universo | 13-Jan-2016
Ecuador alcanzó un acuerdo de pago con la empresa petrolera estadounidense Occidental (Oxy), anunció ayer (9-1) el presidente Rafael Correa, en el enlace sabatino 458, transmitido desde Malchinguí, Pichincha.
El Universo | 13-Jan-2016
President Rafael Correa announced that Ecuador has reached a payment plan with the US oil company, Occidental (Oxy)
SSRN | 13-Jan-2016
The beneficiaries of ISDS have overwhelmingly been companies with more than USD1 billion in annual revenue and individuals with more than USD100 million in net wealth.
Seeking Alpha | 12-Jan-2016
Ecuador paid $100M on Dec. 21; will pay another $100M on Jan. 15; $100M on Jan. 31; $200M on Feb. 29; $300M on March 31; and the remainder on April 29.
Prensa Latina | 11-Jan-2016
Ecuador llegó a un acuerdo con la petrolera estadounidense Oxy sobre el pago de una multa por mil 400 millones de dólares impuesta al país suramericano por un tribunal arbitral, anunció hoy el presidente Rafael Correa.
Bloomberg | 11-Jan-2016
Karuturi Global Ltd., one of the largest investors in Ethiopia’s farm industry, is challenging the termination of its project, claiming the government broke the terms of its agreement with the company.
The Malaysian Insider | 11-Jan-2016
The Malaysian government could be sued by foreign corporations if it intervened in their business activities under the Trans-Pacific Partnership (TPP) agreement.
Huffington Post | 11-Jan-2016
Canadian company TransCanada’s announcement that it will sue the American people for $15 billion perfectly illustrates how today’s corporate-empowering trade policies threaten the way democracy is supposed to work.