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.

AFP | 11-May-2015
Un haut responsable américain a balayé lundi la proposition de la Commission européenne de créer un tribunal international pour régler les litiges entre États et investisseurs étrangers au lieu du mécanisme très controversé des tribunaux d’arbitrage (ISDS).
Press TV | 11-May-2015
The United States has rejected a European Union proposal to establish a global investment court aimed at resolving disputes arising from a massive free trade treaty with the US.
Zawya | 11-May-2015
Foreign investment is crucial for reviving Egypt’s economy, but a new report reveals it can come at a considerable cost, writes Stefan Weichert
The Parliament Magazine | 7-May-2015
MEPs have threatened to block TTIP if ISDS is included, despite revised plans presented to them by European trade commissioner Cecilia Malmström.
Belga | 7-May-2015
La proposition de la commissaire européenne au Commerce, Cecilia Malmström, pour améliorer les procédures d’arbitrage (ISDS) entre États et multinationales dans le cadre de l’accord de libre-échange UE/États-Unis a reçu un accueil mitigé mercredi au Parlement européen.
EurActiv | 7-May-2015
European Trade Commissioner Cecilia Malmström tried to convince MEPs that there are ways to keep the Investment-State Dispute Settlement in the Transatlantic Trade and Investment partnership deal. But unimpressed lawmakers failed to greet it as a full-fledged reform.
EurAsia Review | 6-May-2015
From an international policy point of view, South Africa’s denunciation of BITs is reasonable. It may even be seen as a refreshing retreat from a legal quagmire. But the domestic reality requires wider consideration.
Macleans | 6-May-2015
Mission accomplished? Not quite. American negotiations with Europe may trigger more changes to CETA
Korea Times | 6-May-2015
V.V. Veeder, a British national, has been appointed as the presiding arbitrator for a $4.7 billion international litigation between the Korean government and Dallas-based Lone Star Funds, sources said Tuesday.
Social Sciences Research Network | 6-May-2015
The European Commission’s most recent proposal for ISDS reflects a move away from fake reforms to something potentially more meaningful, but it is insufficient and unreliable, says legal expert Gus Van Harten.