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.

Clayton Utz | 30-Jun-2009
Some managed investment funds may not be able to seek protection under bilateral investment treaties when investing abroad, according to a recent award rendered in an investment treaty arbitration between a various Spanish investment funds and the Russian Federation (Renta 4 S.V.S.A v Russian Federation).
Law.com | 25-Jun-2009
It’s time for the US Department of State to pressure Argentina to comply with its treaty obligations, some lawyers suggest.
OMAL | 23-Jun-2009
Las empresas representadas bajo el nombre de Pacific Rim Cayman LLC, en el marco del Tratado de Libre Comercio entre Estados Unidos, Centroamérica y Republica Dominicana (CAFTA - DR por sus siglas en inglés) demandan al Estado por una cantidad inicial de US$77 millones de dólares, en concepto de indemnización por daños a la inversión realizada en nuestro suelo.
Rights & Democracy | 22-Jun-2009
Investment treaties and free trade agreements offer few instructions as to how such agreements should be reconciled with human rights obligations of the state.
Reuters | 11-Jun-2009
A unit of Goldcorp has lost a bid to get $50 million in compensation after a US trade tribunal rejected claims the gold miner’s operations were hampered by environmental regulations
ITN | 1-May-2009
The global network of over 2800 bilateral investment treaties has been built on the basis of promoting foreign direct investment, and yet, after a decade of research, whether in fact BITs lead to an increase in FDI flows is a matter of debate. ITN has posed a few questions to three academics for their views on the relationship between BITs, FDI flows and sustainable development.
| 3-Apr-2009
Dow AgroSciences is mulling over a NAFTA challenge to Quebec’s law banning the cosmetic use of pesticides, setting a spotlight on one of the most controversial clauses of the trade agreement among Canada, the United States and Mexico.
Rights and Democracy | 21-Feb-2009
Profiles a series of lawsuits that have arisen between foreign investors and their host states — where state compliance with investment treaty obligations is in question and where human rights concerns have resulted from investment projects.
IPS | 13-Feb-2009
As the global economy descends further into crisis, a new report finds that U.S. trade and investment agreements with 52 countries have removed one tool that has proved effective in past crises: capital controls.