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.

CCSI | 25-Jan-2015
In 2014, the US again emerged the winner in investor-state arbitration. But it did suffer losses on a number of important issues, and those losses leave it more vulnerable to future claims, litigation costs, and potential liability.
Techdirt | 25-Jan-2015
Even if CETA is rejected in Europe, claims under the ISDS chapter would still be possible up to three years afterwards for investments made during the provisional period.
Reuters | 22-Jan-2015
Cigarette sales have dropped in Australia since plain packaging was introduced on Dec. 1, 2012, prompting Britain to act before its national election in May even as Australia battles international legal challenges from other countries and manufacturers.
Beyond Brics | 21-Jan-2015
Instead of relying only on a treaty-based approach, India should initiate domestic policy reforms to attract and protect foreign investments, argues Kavaljit Singh
The Ethiopia Observatory (TEO) | 21-Jan-2015
If TTIP is bad, the UK-Ethiopia BIT is worse, says Lorenzo Cotula of IIED
TNI | 20-Jan-2015
This brief analyses and illustrates how international investment rules thwart the struggle for land and food sovereignty.
Reuters | 19-Jan-2015
Harvest Natural Resources Inc, a Texas based oil and gas company, said on Friday it has filed an arbitration request against Venezuela before a World Bank tribunal to protect the value of its investment in the South American country.
The Parliament Magazine | 19-Jan-2015
"ISDS cannot be reformed and, like many archaic trade practices of the 18th century, should be consigned to the annals of history," argues Cecile Toubeau
EurActiv | 15-Jan-2015
Paris et Berlin ne veulent pas d’un mécanisme de règlement des différends en l’état au sein du traité transatlantique (TTIP) et négocient des propositions communes pour faire évoluer le dispositif.