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 Hindu | 14-Nov-2016
India had sought removal of Sir Franklin Berman as the presiding arbitrator of three-member panel.
The Global Legal Post | 10-Nov-2016
A recent landmark appeal ruling is likely to encourage more parties to engage in arbitration.
Reuters | 10-Nov-2016
A battle over plans to build a huge gold mine in Rosia Montana, a Romanian village boasting intact Roman mining shafts and 18th century houses, has moved to an international stage.
Mongabay | 9-Nov-2016
NAFTA, critics say, included investment provisions that inherently created an uneven playing field, allowing corporate investors to directly sue national governments for mega-millions and ultimately sidestep domestic environmental laws.
The Indian Express | 8-Nov-2016
Global MNCs like Cairn Energy and Vodafone have invoked Bilateral Investment Treaty and served arbitration notice to India over tax disputes. While the tax demand on Cairn Energy is Rs 10,247 crore, that on Vodafone is Rs 14,200 crore.
Vieuws | 8-Nov-2016
The move follows the Commission’s pledge from last year to “start work, together with other countries, on setting up a permanent International Investment Court.”
L’actualité | 8-Nov-2016
Le règlement de différends qui opposent des États et des entreprises étrangères devrait se faire devant les tribunaux et non devant des arbitres qui officient derrière des portes closes, affirme le professeur de droit Gus Van Harten.
African Manager | 8-Nov-2016
Le différend Tunisie-Lundin s’oriente à pas sûr vers la résolution. Les termes d’un accord à l’amiable ne sont pas encore connus, car n’étant pas encore officiels.
CDM | 7-Nov-2016
Addiko Bank AG repeated its concern regarding the Proposal of the Amendment law for conversion of loans in Swiss francs to euros.
Reuters | 7-Nov-2016
The Croatian government is facing a lawsuit for forcing local banks to convert Swiss franc loans into euros.