The Legal Monster that lets Companies Sue Countries
The article traces the history of European bilateral investment treaties (BITs) and highlights the recent concerns surrounding the rise of investor-state arbitration.
Today, an increasing number of BITs are being concluded between a developed and a developing country with a view to protect the investments of the developed country by guarantees of non-discrimination in the developing country. Moreover, these BITs grant investors the right to bring claims before an international arbitral tribunal. Thus, the treaty rights are often more favourable to the investor than the rights found under national laws of the host state. The article is a commentary on the dangerous rise of investor-state investment arbitration as both developed and developing country governments face treaty claims from foreign investors bypassing national and European Union law.
You might also be interested in
IISD's Best of 2024: Publications
As 2024 draws to a close, we revisit our most downloaded IISD publications of the year.
Why the Energy Charter Treaty Modernization Doesn't Deliver for Climate
The Energy Charter Conference adopted the "modernized" Energy Charter Treaty (ECT) on December 3, 2024. IISD's Lukas Schaugg explains what the modernization does, when it will enter into force, its tension with EU law, and why the reformed ECT can still hinder climate policies.
The Responsible Agricultural Investment Tool for Agribusiness and Case Studies
This report summarizes a collaboration to support agribusinesses in complying with principles of responsible investment in agriculture and food systems.
The double-standard in investor-state dispute settlements
Countries, especially those in the Global South, have signed investment treaties to lure foreign investors. These treaties often contain investor-state dispute settlement provisions that lead to governments being sued by foreign investors.