Agriculture & food

The investor-state dispute settlement (ISDS) mechanism included in most trade and investment agreements gives foreign investors the right to challenge national laws and regulations related to agriculture and food, would these regulations represent an obstacle to their profits.

About 4% of all ICSID cases concerned agriculture, fishing and forestry issues as of end of 2019.

Most well-known cases include:

• Corn Products International (US) vs. Mexico: in 2009 US$58.4 million were awarded to the agribusiness producer of high fructose corn syrup (HFCS) – a derived sweetener linked to obesity. The investor challenged a government tax levied on beverages sweetened with HFCS (NAFTA invoked).

• Cargill (US) vs. Mexico: US$90.7 million awarded to the food-processing giant in 2009. The investor successfully challenged the abovementioned Mexican tax on HFCS (NAFTA invoked).

• Micula (Sweden) vs. Romania: US$250 million awarded to the multiple food-processing company in 2013, following the termination of incentives from the Romanian government in order to comply with EU law (Romania-Sweden BIT invoked).

Photo: Indymedia Mexico

(March 2020)

Latin American Herald Tribune | 2-May-2017
Although the original UNCITRAL panel that heard the case allowed jurisdiction, the French Court of Appeals that heard Venezuela’s appeal annulled parts of that jurisdiction decision.
OMAL | 13-Feb-2017
El presente artículo analiza los posibles impactos de la firma del CETA y del TTIP sobre la agricultura y la alimentación en Europa
Law Gazette | 3-Feb-2017
The High Court has handed down a judgment which stays enforcement of an international dispute resolution award in Micula v. Romania case
Inf’OGM | 30-Sep-2016
S’il est adopté, le Ceta aboutira à une consolidation des droits de propriété industrielle dont le Certificat d’obtention végétale et le brevet qui concernent directement les semences.
Spicy IP | 9-Sep-2016
The latest round of RCEP talks paints a worrisome picture for the global south, given that it will bring 3.5 billion people and 12% of world trade into its fold.
Common Dreams | 16-Aug-2016
A major topic of discussion at the World Social Forum in Montreal was the problems with TTIP-style free trade agreements and how we can stop them, writes Nick Dearden
Reuters | 8-Jul-2016
Spanish agriculture company Grupo Agroinsumos Ibero-americanos and associated firms have filed an arbitration case against Venezuela via a World Bank tribunal, seeking compensation for the 2010 nationalization of its operations.
The Guardian | 25-Apr-2016
Government ordered to pay compensation after Hugo Chávez nationalised British beef company’s landholdings.
Earth Institute | 17-Mar-2016
A new report from the Columbia Center on Sustainable Investment explores the dilemmas posed by land investments under international investment treaties and human rights law.
Romania Journal | 29-Feb-2016
Brothers Viorel and Ioan Micula won the lawsuit against the Romanian state at the International Centre for Settlement of Investment Disputes (ICSID), and were awarded USD 200 million in damages.