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.

WikiLeaks | 26-Mar-2015
WikiLeaks annonces its release of the "Investment Chapter" from the secret negotiations of the TPP (Trans-Pacific Partnership) agreement.
Economic Times | 25-Mar-2015
Cairn Plc is seeking compensation from the government of India for the steep fall in the value of its shares in Vedanta-controlled Cairn India, which it is not allowed to sell until it settles a controversial retrospective tax demand of $1.60 billion, under the UK-India Bilateral Investment Treaty.
Globe & Mail | 25-Mar-2015
A NAFTA arbitration panel has ruled against Canada in a claim by a US company that wanted to develop a quarry in Nova Scotia, although a dissenting member of the panel warned that the decision will be seen as a “remarkable step backwards” in environmental protection.
The Guardian | 25-Mar-2015
A future government must be allowed to expand the NHS without facing legal challenge under a proposed new EU-US trade deal, according to a sharply critical report from an all-party committee of MPs.
Washington International Trade Association | 25-Mar-2015
Former US judge, arbitrator and president of the International Court of Justice says the ISDS system, currently under attack, reflects US law and enforces US leadership and therefore should be preserved.
Public Citizen | 23-Mar-2015
Questions and answers on investor-state dispute settlement (ISDS) that pertain to incorrect claims being made by the Office of the US Trade Representative.
EurActiv | 23-Mar-2015
Cecilia Malmström, la commissaire européenne en charge du commerce, a déclaré qu’elle soutenait l’idée d’un tribunal d’investissement permanent pour remplacer le mécanisme de règlement des différends entre investisseurs et États, qui a suscité un débat virulent dans les négociations sur le TTIP.
Deutsche Welle | 23-Mar-2015
German Economy Minister Sigmar Gabriel has pledged to prevent any clauses in a US-EU trade deal that go against the ideals of his party, the Social Democrats - including protection clauses called for by the US.
Australia Broadcasting Corporation | 19-Mar-2015
Australia’s primary negotiator on medicines for the US-Australia FTA, Dr Ruth Lopert, warns that the TPP could force the Australian Government to spend hundreds of millions of dollars to subsidise medicines.
Lexology | 18-Mar-2015
The UN Convention on Transparency in Treaty-Based Investor-State Arbitration has been opened for signature.