Dear Sir or Madam,
I wish to share with you UNCTAD’s
report on the latest developments in investor-State dispute settlement
(ISDS). ISDS continues to be in the spotlight of the public debate. UNCTAD’s
new report contributes to this debate by providing up-to-date statistical
information as well as a review of the decisions issued by arbitral tribunals
Among the highlights are:
continue to use the ISDS mechanism. In 2014, claimants initiated 42 known
treaty-based ISDS cases. The total number of known ISDS cases reached 608.
40 per cent of new cases initiated against developed countries, the relative
share of cases against developed countries has been on the rise (the historical
average is 28 per cent). A quarter of all new disputes are intra-EU cases.
two types of State conduct most commonly challenged by investors in 2014
were cancellations or alleged violations of contracts and revocations or
denials of licences. The sectors where most cases were filed in 2014 are
the generation and supply of electric energy (at least eleven cases), followed
by oil, gas and mining (ten), construction (five) and financial services
Energy Charter Treaty (ECT) surpassed the North American Free Trade Agreement
(NAFTA) as the most frequently invoked IIA.
tribunals rendered at least 43 decisions in 2014, 34 of which are public.
The overall number of concluded cases has reached 356, with 37 per cent
decided in favour of the State, 25 per cent in favour of the investor and
28 per cent of cases settled.
decisions adopted in 2014 touch upon a number of important legal issues
concerning the scope of treaty coverage, the conditions for bringing ISDS
claims, the meaning of substantive treaty protections, the calculation
of compensation and others. On a number of issues, tribunals continue to
arrive at divergent conclusions.
The IIA regime is going through a period
of reflection, review and revision. Investment dispute settlement is at
the heart of this debate, with a number of countries reassessing their
positions. There is a strong case for a systematic reform of ISDS.
UNCTAD’s forthcoming World Investment
Report 2015 will provide an action menu for the reform of international
I hope that you find our IIA
Issues Note on the latest developments in investor-State dispute settlement
useful and interesting - please feel free to also share it with your colleagues!
Director, Investment and Enterprise
Head, World Investment Report team
Palais des Nations, Geneva
(World Investment Reports)