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.

S2B | 7-Oct-2015
Why the Commission’s proposal for an “Investment Court System” still fails to address the key problems of foreign investors’ privileges
Vieuws | 7-Oct-2015
The European Commission intends to announce in mid October its plans to revise the deal in order to add the missing investment protection chapter to it.
Global Trade Online | 7-Oct-2015
Trans-Pacific Partnership (TPP) countries have agreed on language that will allow members to exclude tobacco control measures from the scope of investor-state dispute settlement.
The Global Legal Post | 6-Oct-2015
The bankruptcy of oil and gas giant Yukos led to multiple proceedings against the Russian state and some enormous awards.
Info Justice | 2-Oct-2015
The new exception validates, rather than assuages, the concerns of those who have been criticizing ISDS systems for many years. Without express carve outs, ISDS provisions do threaten common health and safety regulations.
South Centre | 2-Oct-2015
Foreign direct investment (FDI) is one of the most ambiguous and the least understood concepts in international economics. Common debate on FDI is confounded by several myths regarding its nature and impact.
The Edge Markets | 2-Oct-2015
Governments will be allowed to block tobacco companies from suing over anti-smoking measures under a US proposal being considered by Pacific trading partners as part of Trans-Pacific Partnership trade deal.
Kluwer Arbitration Blog | 2-Oct-2015
There is an obvious need at the investors’ side for a mechanism making it possible to prevent the threatened violation of their investment. It is fair to say that where the violation of the investment is still only potential, notifying the dispute should be the primary tool for investment protection.
The Star | 2-Oct-2015
What little we know about the Harper government’s many international trade deals is cause for grave concern.
CDR | 2-Oct-2015
What are the next steps for investment protection in South Africa, as the country draws up new legislation governing foreign direct investment following the termination of a number of bilateral investment treaties?