Investor-state dispute settlement (ISDS) and the Transatlantic Trade and Investment Partnership (TTIP)

Investor-state dispute settlement (ISDS) is a provision often found in the text of trade and investment agreements. It allows investors to bring legal proceedings against foreign governments that are party to the agreement, typically if they believe they have been subject to expropriation or discriminatory treatment in that country. The proposed Transatlantic Trade and Investment Partnership (TTIP) is envisaged to contain “an effective and state-of-the-art investor-to-state dispute settlement mechanism.” This has raised concerns that the TTIP will undermine the power of national governments to act in the interest of their citizens.

This note answers some common questions about Investor State Dispute Settlement provisions (ISDS) and discusses some ISDS cases in the context of the proposed EU-US Transatlantic Trade and Investment Partnership.