Draft Agreement for the Coordinated Suspension of Investor–State Dispute Settlement With Respect to COVID-19-Related Measures and Disputes
As states deal with the public health and economic fallout of COVID-19, those with international investment agreements (IIAs) may also face the risk of a wave of investor–state dispute settlement (ISDS) cases with respect to their COVID-19 measures. These measures could include regulations to protect public health and ensure equitable economic recovery. The Agreement for the Coordinated Suspension of Investor–State Dispute Settlement With Respect to COVID-19-Related Measures and Disputes provides language for states to address this risk by suspending treaty-based ISDS for COVID-19-related measures.
Why did IISD develop this draft agreement?
IISD developed the Agreement in response to growing concern among governments that ISDS could undermine their ability to take emergency public health and economic policy measures to respond to COVID-19 and its impacts. Even as the pandemic continues to disrupt lives and societies, international law firms and litigation funders have published guidance on how these measures could be challenged using treaty-based ISDS. Governments have already been threatened with treaty- and contract-based ISDS.
IISD is continuing to work with governments, regional economic communities, and other partners to raise awareness of this threat and provide options for how it can be mitigated.
How was the draft agreement developed?
IISD conducted broad consultations on the draft Agreement, receiving submissions from developing country investment negotiators, international law experts, and civil society organizations. The consultations were undertaken throughout 2020 through:
- Two virtual workshops (in French and English, respectively) for developing country investment negotiators.
- An online consultation on the first draft of the suspension language agreement.
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