Why Is Investment Treaty and Investor-State Dispute Settlement Reform Needed?
Questions & answers
The current investment treaty and investor-state dispute settlement system threatens climate action, human rights, and fair economic development. We need urgent reform. Find out how the system came about, how it functions, why it's an issue, and how to reform it.
Recommendations
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The investment treaty and ISDS system threatens fair economic development, climate action, and social justice. We need urgent reform to level the playing field between foreign investors and developing countries.
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IISD’s Q&A explains how the treaty and ISDS system developed, why it is an obstacle for sustainable development, and who stands to gain from keeping the old regime in place.
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IISD's Q&A maps out how different international investment actors can contribute to reforming the treaty and ISDS system—including policy-makers, civil society organizations, academics, students, think tanks, media, and law firms.
The current investment treaty and investor-state dispute settlement (ISDS) system threatens climate action, social justice, and fair economic development. We need urgent reform to level the playing field between foreign investors and developing countries.
For decades, activists, civil society organizations, UN agencies, media, academics, think tanks, and governments have shed light on the need to change the world's investment governance to meet the challenges of our time.
Building on earlier work, this new Q&A unpacks how the system came about, why it is an issue, and what we can do to accelerate reform in 2025 and beyond.
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