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.

Lexology | 4-Nov-2015
The number of claims filed by renewable energy investors under the Energy Charter Treaty (ECT) has risen significantly.
Lexology | 3-Nov-2015
Besides abolishing tariffs and providing for investor-state dispute settlement, some of Vietnam’s highlights under the Trans-Pacific Partnership free trade pact include removing the dreaded economic needs test
Connaissance des énergies | 3-Nov-2015
Le tribunal d’arbitrage de la Banque Mondiale, le Cirdi, a ordonné à l’Equateur de payer 1 milliard de dollars à la compagnie pétrolière américaine Oxy, pour rupture anticipée d’un contrat d’exploitation
Reuters | 3-Nov-2015
A World Bank tribunal reduced to about $1 billion the amount Ecuador must pay Occidental Petroleum Corp in compensation for seizing the U.S.-based company’s assets
OMAL | 2-Nov-2015
El 41% del Presupuesto General del Estado (PGE) de Ecuador ($ 34.097 millones en 2015, restados los 2.220 millones $ tras el reajuste de enero y agosto pasado) resultaría afectado si el país pierde las 24 demandas presentadas por empresas extranjeras que operaron en el país, al amparo de los Tratados Bilaterales de Inversiones (TBI).
Reuters | 2-Nov-2015
Ecuador is in talks with Occidental Petroleum Corp to seek an agreement over a roughly $1.77 billion award the Andean country was ordered to pay for seizing the U.S.-based company’s assets in 2006
Vrijschrift Blog | 2-Nov-2015
The Court of Justice of the EU should assess whether the trade agreement with Singapore is compatible with the EU Treaties and Charter of fundamental rights before it enters into force.
NZ Herald | 30-Oct-2015
New Zealand has an open mind about replacing traditional investor-state dispute settlement (ISDS) with a new international court-based system proposed by the European Union.
Reuters | 30-Oct-2015
The United States is wary of a European Union proposal for a new court system to settle investment disputes as part of the world’s biggest free-trade agreement
Democracy Now | 30-Oct-2015
The basic point is that TPP is a trade agreement that has all kinds of provisions intended to restrict regulations.