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To Governments:
We are writing to you today to urge you to take a lead in ensuring countries around the world do not face a wave of investor-state dispute settlement (ISDS) cases arising from actions taken to tackle the COVID-19 pandemic and ensuing economic crisis.
Globally, some governments are taking actions to save lives, stem the pandemic, protect jobs, counter economic disaster and ensure peoples’ basic needs are met. The level of these actions has been unprecedented in modern times and the need for these actions has been clear. But the expansive reach of the ISDS system could open such critical government actions to claims for millions in compensation from foreign investors. The numbers of such claims could also be unprecedented and impose massive financial burdens on governments struggling under the burden of devastating health and economic crises.
ISDS in various forms is written into many trade and investment agreements. It allows foreign investors – and foreign investors alone – to sue governments in secretive tribunals outside of the national legal system for amounts far higher than are likely to be available to them in domestic courts.
The lawyers, who profit enormously from the ISDS system, are already fishing for corporate clients interested in using ISDS tribunals to extract large sums from governments over actions they have taken in response to the COVID-19 crisis. Law firms,[1]trade experts,[2] UN bodies[3] and human rights experts[4] have already predicted an imminent wave of ISDS cases. Specialist law journals have speculated that: “the past few weeks may mark the beginning of a boom” of ISDS cases.[5] Crisis situations in the past, such as the Argentine financial crisis or the Arab Spring, have led to many cases.
Cases could arise from actions that many governments have taken, such as those with the aim of:
- restricting and closing business activities to limit the spread of the virus and protect workers
- securing resources for health systems by requisitioning use of private hospital facilities, putting private healthcare providers under public control, or requiring manufacturers to produce ventilators
- mandating relief from mortgage payments or rent for households and businesses
- preventing foreign takeovers of strategic businesses stricken by the crisis
- ensuring access to clean water for hand-washing and sanitation by freezing utility bills and suspending disconnections
- ensuring medicines, tests and vaccines are affordable
- debt restructuring
The damage from a COVID-related wave of ISDS cases could be immense. From among the 1,023 known ISDS cases, thirteen have resulted in awards or settlements of more than US$1billion, including for lost future profits.[6] By the end of 2018, states worldwide had been ordered or agreed to pay investors in publicly known ISDS cases the amount of US$88 billion.[7] Some developing countries have billions outstanding in pending ISDS claims.
At a time when government resources are stretched to the limit in responding to the crisis, public money should not be diverted from saving lives, jobs and livelihoods into paying ISDS awards or legal fees to fight a claim. And given that the battle against COVID-19 will continue, a spate of cases now could result in a ‘regulatory chilling’ effect, in which governments water down, postpone or withdraw actions to tackle the pandemic from the fear of such payments, which could be deadly.
In order to prevent this, we urge governments to immediately and urgently take the following steps, before the first cases are brought:
- Permanently restrict the use of ISDS in all its forms in respect of claims that the state considers to concern COVID-19 related measures.
- Suspend all ISDS cases on any issue against any government while it is fighting COVID-19 crises, when capacity needs to be focussed on the pandemic response.
- Ensure that no public money is spent paying corporations for ISDS awards during the pandemic.
- Stop negotiating, signing, and or ratifying any new agreements that include ISDS.
- Terminate existing agreements with ISDS, ensuring that ‘survival clauses’ do not allow cases to be brought subsequently.
- In light of threats exposed by the pandemic, comprehensively review existing agreements that include ISDS to see if they are fit for purpose.
More information on how to implement these actions is available in the annex to this letter.
We urge you to take immediate action to ensure that the duty of governments to regulate in the public interest is safeguarded and put beyond the scope of ISDS claims.
Signed (annex below),
International and regional organisations
- ACAFREMIN
- ActionAid
- Africa Europe Faith & Justice Network
- Amigos de la Tierra América Latina y el Caribe – ATALC
- Arab NGO Network for Development
- Asia Pacific Forum on Women, Law & Development (APWLD)
- Asian Peoples’ Movement on Debt and Development (APMDD)
- AWID
- BEACON
- bilaterals.org
- Center for International Environmental Law (CIEL)
- CIDSE
- Committee for the Abolition of Illegitimate Debt (CADTM)
- Confederación Sindical de trabajadoras/es de las Américas (CSA)
- DAWN (Development Alternatives with Women for a New Era)
- Econews Africa
- Emmaüs International
- European Attac Network
- European Coordination Via Campesina (ECVC)
- European Environmental Bureau
- European Federation of Public Service Unions
- European Network Against the Privatization and Commercialization of Health and Social Protection / Réseau européen contre la privatisation et la commercialisation de la santé et de la protection sociale
- Focus on the Global South
- Food & Water Action Europe
- Friends of the Earth Europe
- Friends of the Earth International
- Gender and Trade Coalition
- Global Alliance on Media and Gender (GAMAG)
- Global Anti-Aerotropolis Movement (GAAM)
- Global Policy Forum
- GRAIN
- Greenpeace
- Health Action International
- Health Global Access Project
- IndustriALL Global Union
- Institute of the Blessed Virgin Mary – Loreto Generalate
- International Association of Machinists and Aerospace Workers (IAMAW)
- International Association of People’s Lawyers
- International Baby Food Action Network
- International Corporate Accountability Roundtable (ICAR)
- International Trade Union Confederation (ITUC )
- International Treatment Preparedness Coalition
- International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations (IUF)
- International Women’s Rights Action Watch Asia Pacific
- Latindadd – Red Latinoamericana por Justicia Económica y Social
- Médecins Sans Frontières Access Campaign
- Moana Nui
- Oxfam International
- Pacific Network on Globalisation
- Peoples Health Movement
- Plataforma América Latina mejor sin TLC
- Project on Organizing, Development, Education, and Research (PODER)
- Public Services International – Interamerica
- Public Services International (PSI)
- Religious of the Sacred Heart of Mary JPIC / NGO
- REPEM -LAC
- RIPESS – Red Intercontinental de Promotion de l’Economia Social Solidaria
- Sisters of Mercy of the Americas – Justice Team
- Social Watch
- Society for International Development (SID)
- Soroptimist International
- SumOfUs
- Tax Justice Network
- Third World Network
- Third World Network-Africa (TWN-Africa)
- UNI Américas
- United Methodist Church – General Board of Church and Society
- UNMGCY (United Nations Major Group for Children and Youth)
- Urgenci International Community Suppported Agriculture Network
- WeMove Europe
- WIDE+ (Women In Development Europe+) gender and trade WG
- WoMin
- WoMin African Alliance
- World Rainforest Movement
National
- Campaign Against Foreign Control of Aotearoa, Aotearoa / New Zealand
- GE Free NZ in Food and environment, Aotearoa / New Zealand
- Its Our Future, Aotearoa / New Zealand
- New Zealand Council of Trade Unions (NZCTU), Aotearoa / New Zealand
- New Zealand Social Credit Party, Aotearoa / New Zealand
- Sustainable Ōtautahi Christchurch, Aotearoa / New Zealand
- Acción por la Biodiversidad, Argentina
- Amigos de la Tierra Argentina, Argentina
- Asamblea Argentina mejor sin TLC, Argentina
- Asamblea Jáchal No Se Toca, Argentina
- Asociacion Ciudadana por los Derechos Humanos, Argentina
- ATTAC Argentina, Argentina
- CENTRAL DE TRABAJADORES ARGENTINOS de los TRABAJADORES (CTA-T), Argentina
- Centro de Estudios Legales y Sociales (CELS), Argentina
- Colectivo de Estudios e Investigaciones Sociales (CEISO), Argentina
- Confederación de Trabajadores Municipales (CTM), Argentina
- Confederacion General del Trabajo de la Republica Argentina , Argentina
- CTA Autónoma, Argentina
- Diálogo 2000-Jubileo Sur Argentina, Argentina
- Foro Ciudadanode Participación por la Justicia y los Derechos Humanos FOCO, Argentina
- FSM, Argentina
- Fundación ECOSUR, Argentina
- Fundación GEP, Argentina
- Fundacion para Estudio e Investigación de la Mujer , Argentina
- Iniciativa Arcoiris de Ecología Politica, Argentina
- Instituto del Mundo del Trabajo Julio Godio, Argentina
- Multisectorial Antiextractivista, Argentina
- Ong ALERTA ANGOSTURA , Argentina
- PROYECTO CRECER CON ESPERANZA, Argentina
- Red de Defensoras del Ambiente y el Buen Vivir, Argentina
- Center for Development of Civil Society, Armenia
- Confidence Health NGO, Armenia
- ActionAid Australia, Australia
- Australian Council of Trade Unions, Australia
- Australian Fair Trade and Investment Network, Australia
- Australian Food Sovereignty Alliance, Australia
- Australian Religious Response to Climate Change, Australia
- Australians for Justice, Australia
- Bougainville Freedom Movement, Australia
- Catholics in Coalition for Justice and Peace, Australia
- ClimActs, Australia
- Data Stream Pty Limited, Australia
- Food Intolerance Network, Australia
- Frenchs Forest Catholic Parish Social Justice Group, Australia
- Friends of the Earth Adelaide, Australia
- Friends of the Earth Australia, Australia
- GeneEthics, Australia
- Grail Global Justice Network, Australia
- Locals Into Victoria’s Environment, Australia
- Loreto Sisters Justice Network, Australia
- MISEREOR, Germany
- Missionaries of the Sacred Heart Justice and Peace Centre, Australia
- Mundaring in Transition, Australia
- Music Trust, Australia
- Nature First, Australia
- Pesticide Action Group of Western Australia, Australia
- Public Health Association of Australia, Australia
- SEARCH Foundation, Australia
- Sisters of Charity, Australia
- SJ Around the Bay, Australia
- Sutherland Shire Environment Centre, Australia
- Union Aid Abroad-APHEDA , Australia
- Allianz gerechter Handel, Austria
- Anders Handeln, Austria
- Attac Austria, Austria
- Center for Encounter and Active Non-Violence, Austria
- International Fellowship of Reconciliation Austria, Austria
- transform!at, Austria
- Welthaus Diözese Graz-Seckau, Austria
- WIDE, Austria
- younion – Die Daseinsgewerkschaft, Austria
- AK EUROPA (Chamber of Labour Austria), Austria
- Aid Organization, Bangladesh
- Bangladesh Krishok Federation , Bangladesh
- ELA, Basque Country
- 11.11.11, Belgium
- Broederlijk Delen, Belgium
- CGSP ALR, Belgium
- CNCD-11.11.11, Belgium
- Corporate Europe Observatory, Belgium
- Entraide et Fraternité , Belgium
- FIAN Belgium, Belgium
- FOS, Belgium
- Le Monde selon les femmes asbl, Belgium
- Links Ecologisch Forum – Forum Gauche Ecoliogie, Belgium
- Solsoc, Belgium
- Viva Salud, Belgium
- WSM , Belgium
- MOC Mouvement Ouvrier Chrétien, Belgium
- Social Watch Bénin, Benin
- ANAPA, Bolivia
- Coordinadora de la Mujer, Bolivia
- TerraJusta, Bolivia
- Centar za zivotnu sredinu/ Friends of the Earth Bosnia and Herzegovina, Bosnia and Herzegovina
- Adufms, Brazil
- Aliança RECOs – Redes de Cooperação Comunitária Sem Fronteiras, Brazil
- Central de Movimento Popular de Pernambuco, Brazil
- CENTRO ECOLÓGICO, Brazil
- CONDSEF/FENADSEF, Brazil
- Confederação dos Trabalhadores no Serviço Público Municipal – Confetam/CUT, Brazil
- CONTRAM ISP AMERICAS, Brazil
- FONASC, Brazil
- Fórum Sindical de AP, RR e RO, Brazil
- Gestos (soropositividade, comunicação, gênero), Brazil
- IBFAN Brasil, Brazil
- Instituto Oca do Sol, Brazil
- Instituto Políticas Alternativas para o Cone Sul (PACS), Brazil
- Internacional de Serviços Públicos, Brazil
- Movimento Ciencia Cidadã Brasil, Brazil
- Movimento Mulheres pela P@Z!, Brazil
- Movimento Negro Unificado de Pernambuco, Brazil
- Movimento Ouro Preto pela Infância , Brazil
- Observatório da Cidadania Dom José Alves da Costa, Brazil
- Observatório da Mulher, Brazil
- Organização de Cidadania, Cultura e Ambiente (OCCA Pantanal), Brazil
- REBRIP- Rede Brasileira de Integração dos Povos , Brazil
- Sindicato dos Psicólogos do Estado de São Paulo, Brazil
- SINDSEP AP, Brazil
- SINDSEP PE, Brazil
- Avtonomna Rabotnicheska Konfederacija – ARK (Autonomous Worker’s Confederation), Bulgaria
- Federation of Trade Unions – Health services – CITUB, Bulgaria
- Za Zemiata, FoE Bulgaria, Bulgaria
- ALTSEAN-Burma, Burma
- DUKINGIRE ISI YACU, Burundi
- SFBSP-Burundi, Burundi
- Terre des Jeunes du Burundi, Burundi
- Social Action for Community and Development , Cambodia
- Women’s Network for Unity, Cambodia
- Worker’s Information Center (WIC), Cambodia
- Africa Development Interchange Network (ADIN), Cameroon
- Cadire Cameroon Association, Cameroon
- Federation of Environmental and Ecological Diversity for Agricultural Revampment and Human Rights (FEEDAR & HR), Cameroon
- Gender Empowerment and Developmemt – GeED, Cameroon
- Alliance du personnel professionnel et technique de la santé, Canada
- AmiEs de Terre de Québec, Canada
- ATTAC-Québec, Canada
- Canadian HIV/AIDS Legal Network, Canada
- Centrale des syndicats démocratiques (CSD), Canada
- Comité pour les droits humains en Amérique latine (CDHAL), Canada
- Conseil central du Montréal métropolitain-CSN, Canada
- Council of Canadians, Canada
- MiningWatch Canada, Canada
- National Union of Public and General Employees (NUPGE), Canada
- Réseau québécois sur l’intégration continentale, Canada
- Syndicat de professionnelles et professionnels du gouvernement du Québec, Canada
- Unifor, Canada
- CSN, Canada
- Antimafia Chile, Chile
- Asociación Nacional de Funcionarios de Impuestos Internos de Chuile – ANEIICH, Chile
- Chile Mejor sin TLC, Chile
- CINTRAS. Centro de Salud Mental y Derechos Humanos, Chile
- Comisión de DDHH Colegio de Enfermeras de Chile, Chile
- Comunidad Ecuménica Martin Luther King, Chile
- Confederación General de Trabajadores (CGT), Chile
- Editorial Quimantu Chile, Chile
- Fundación Constituyente XXI, Chile
- Observatorio Latinoamericano de Conflictos Ambientales OLCA, Chile
- Plataforma Chile Mejor sin TLC, Chile
- Confederación de Trabajadores de Colombia – CTC, Colombia
- Emisora Comunitaria de Víctimas VCA, Colombia
- Federacion Seccional FECOTRASERVIPUBLIOCOS, Colombia
- Fundación IFARMA, Colombia
- Grupo Semillas, Colombia
- Internacional de Servicios Públicos (ISP) Países Andinos, Colombia
- ISP, Colombia
- Organización Artemisas, Colombia
- Fondation Eboko, Congo (Brazzaville)
- CAUSE RURALE, Congo (Kinshasa)
- Observatoire d’etudes et d’appui a la responsabilite sociale et environnementale ( OEARSE ), Congo (Kinshasa)
- Fundacion Justicia y Genero, Costa Rica
- PSI, Costa Rica
- World Vision LACC, Costa Rica
- Ekumenická akademie (Ecumenical Academy), Czech Republic
- Global Aktion, Denmark
- KULU-Women and Development, Denmark
- NOAH – Friends of the Earth Denmark, Denmark
- Confederación Nacional de Unidad Sindical (CNUS) , Dominican Republic
- SITRACORAASAN, Dominican Republic
- CEDEAL, Ecuador
- Centro de Documentación en Derechos Humanos “Segundo Montes Mozo S.J.” (CSMM), Ecuador
- FEDAEPS, Ecuador
- Frente Nacional por la Salud de los Pueblos del Ecuador (FNSPE), Ecuador
- red Ecuador Decide Mejor sin TLC, Ecuador
- UDAPT- Union of those affected by Texaco, Ecuador
- CESTA Amigos de la Tierra, El Salvador
- Diverse Voices and Action (DIVA) for Equality, Fiji
- Finnish Asiatic Society, Finland
- Maan ystävät , Finland
- TTIP Network Finland, Finland
- Adéquations, France
- Aitec, France
- Alofa Tuvalu, France
- Amis de la Terre , France
- Association des Femmes de l Europe Meridionale (AFEM), France
- Attac France, France
- CADTM France, France
- CCFD-Terre Solidaire, France
- Collectif Stop CETA-TAFTA, France
- Comité Pauvreté et Politique, France
- Confederation Paysanne, France
- Coordination Nationale des comités de défense des hôpitaux et maternités de proximité, France
- Fédération Syndicat CFDT Santé Sociaux, France
- France Amérique Latine (FAL), France
- FRANCE NATURE ENVIRONNEMENT, France
- PHABRE, France
- ReAct, France
- Réseau Foi & Justice Afrique Europe antenne France, France
- SB-ECV, France
- Sciences Citoyennes , France
- Sherpa, France
- Veblen Institute, France
- Observatoire gabonais sur la responsabilité sociétale des entreprises, des administrations et des industries (OGARSEAI), Gabon
- African Women 4 Empowerment e. V., Germany
- Aktionsgruppe Babynahrung e.V., Germany
- Attac Germany, Germany
- BUKO Pharma-Kampagne, Germany
- BUND (Friends of the Earth Germany), Germany
- Medico International, Germany
- Mehr Demokratie e.V. , Germany
- PowerShift e.V., Germany
- Pro REGENWALD e.V., Germany
- Stiftung Asienhaus, Germany
- Umweltinstitut München e.V., Germany
- Abibiman Foundation , Ghana
- AbibiNsroma Foundation , Ghana
- Alliance for Empowering Rural Communities (AERC-Ghana) , Ghana
- God’s Harvest Foundation , Ghana
- Consumer Association the Quality of Life-EKPIZO, Greece
- Nature Friends Greece, Greece
- CEGSS, Guatemala
- Consejo de Investigaciones en Desarrollo, Guatemala
- Coordinación de ONG y Cooperativas CONGCOOP, Guatemala
- SITRAINFOM, Guatemala
- Confederation des Travailleurs-euses des Secteurs Public et Prive (CTSP), Haiti
- Ligue Nationale des Enseignants Haitiens (LINEH), Haiti
- PAPDA, Haiti
- ANAFAE, Honduras
- CONROA, Honduras
- Clean Air Action Group, Hungary
- Egyetemi Zöld Kör , Hungary
- Fauna Alapítvány, Hungary
- Fenntarthatóság Felé Egyesület (Towards Sustainability Association), Hungary
- Fridays For Future Budapest, Hungary
- Gaja Environmental Non-governmental Organization , Hungary
- Hatodik Nap Egyesület , Hungary
- Hungarian Association of NGOs for Development and Humanitarian Aid, Hungary
- Hungarian Climate Alliance, Hungary
- Karátson Gábor Kör, Hungary
- Kisközösségi Program, Hungary
- Közép-Magyarországi Zöld Kör, Hungary
- Magosfa Foundation, Hungary
- Magyar Természetvédők Szövetsége / Friends of the Earh Hungary, Hungary
- Society of Women for the Lake Balaton, Hungary
- Tanácsadók a Fenntartható Fejlődésért, Hungary
- Védegylet Egyesület, Hungary
- Zöld Akció Egyesület (Green Action) , Hungary
- AINLIEF, India
- Amitava Guha, India
- Association For Promotion Sustainable Development, India
- Campaign for access to medicines, diagnostics and medical devices, India, India
- Delhi Network of Positive People (DNP+), India
- Food Sovereignty Alliance , India
- Ibn Sina Academy of Medieval Medicine and Sciences, India
- Indian Social Institute, India
- Initiative for Health & Equity in Society, India
- Innovative Alliance for Public Health , India
- IT for Change, India
- Lawyers Collective , India
- Madhyam, India
- Indonesia AIDS Coalition, Indonesia
- Indonesia for Global Justice, Indonesia
- KRuHA – people’s coalition for the right to water, Indonesia
- Solidaritas Perempuan, Indonesia
- Tammuz Org. for Social Development, Iraq
- Cobh Zero Waste, Ireland
- Comhlámh Trade Justice Group, Ireland
- Latin America Solidarity Centre (LASC), Ireland
- Peoples Movement – Gluaiseacht an Phobail, Ireland
- Trócaire, Ireland
- Coordinamento nord sud del mondo, Italy
- Effe Rivista Femminista, Italy
- Fairwatch, Italy
- MAG4 Piemonte sc, Italy
- MEDICINA DEMOCRATICA, onlus, Italy
- Partito Umanista, Italy
- Salviamo il Paesaggio, Italy
- Stop TTIP Italia, Italy
- Stop TTIP NordOvest, Italy
- Transform! Italia, Italy
- Tripla Difesa Onlus Internazional No Violence ODV, Italy
- Jamaica Association of Local Government Officers, Jamaica
- AM-net (Advocacy and Monitoring Network on Sustainable Development), Japan
- National Coalition for Joint Action to Stop the Second Stage of USJTA, Japan
- National Federation of Farmer’s Unions, Japan
- Pacific Asia Resource Center(PARC), Japan
- People’s Action against TPP, Japan
- Popoki Peace Project, Japan
- ZENROREN, National Confederation of Trade Unions, Japan
- Feminist League, Kazakhstan
- East African Tax and Governance Network , Kenya
- Haki Nawiri Afrika, Kenya
- International Relations Society of Kenya , Kenya
- Jamaa Resource Initiatives, Kenya
- PELUM Kenya , Kenya
- PA women’s organization Alga , Kyrgyzstan
- National Institution of Social Care and Vocational Training, Lebanon
- Policy Analysis and Research Institute of Lesotho , Lesotho
- Green Advocates International, Liberia
- National Health Workers Union of Liberia (NAHWUL), Liberia
- Mouvement Ecologique, Luxembourg
- Centre for Social Concern and Development (CESOCODE) , Malawi
- Accessible and Affordable Medicines for All Malaysia (A2MAM), Malaysia
- Consumers Association of Penang, Malaysia
- EMPOWER Malaysia (Persatuan Kesedaran Komuniti Selangor), Malaysia
- IDRIS Association, Malaysia
- MyWATCH – Malaysian Women’s Action on Tobacco Control and Health, Malaysia
- National Union of Transport Equipment and Allied Industries Workers, Malaysia
- Positive Malaysian Treatment Access & Advocacy Group (MTAAG+), Malaysia
- PT Foundation, Malaysia
- Sahabat Alam Malaysia (Friends of the Earth Malaysia), Malaysia
- SOCIALIST PARTY MALAYSIA , Malaysia
- Treat Every Environment Special (TrEES), Malaysia
- University Malaya General Staff Union (UMGSU) , Malaysia
- Friends of the Earth Malta, Malta
- ONG Mer Bleue, Mauritania
- Réseau Mauritanien pour l’Action Sociale, RMAS, Mauritania
- Asamblea Veracruzana de Iniciativas y Defensa Ambiental – LAVIDA , Mexico
- Asociación Nacional de Industriales de Transformación (ANIT), Mexico
- Centro de Derechos Humanos Fray Francisco de Vitoria O.P. A.C., Mexico
- Centro de Promocion y Educacion Profesional Vasco de Quiroga, Mexico
- Equidad de Género: Ciudadanía, Trabajo y Familia, Mexico
- Fundación Mexicana para la Planeación Familiar, A. C. MEXFAM, Mexico
- Grupo Tacuba, A. C. , Mexico
- Iniciativas para el Desarrollo de la Mujer Oaxaqueña (IDEMO), Mexico
- MY World Mexico, Mexico
- Red Mexicana de Acción frente al Libre Comercio (RMALC), Mexico
- STUNAM, Mexico
- LGBT Centre, Mongolia
- Oyu Tolgoi Watch, Mongolia
- Global South Coalition for Dignified Menstruation, Nepal
- National Alliance of Women Human Rights Defenders , Nepal
- National Indigenous Women Forum, Nepal
- Radha Paudel Foundation, Nepal
- Tarangini Foundation, Nepal
- Union of Public Services in Nepal , Nepal
- Both ENDS, Netherlands
- CBSM, Netherlands
- Centre for Research on Multinational Corporations (SOMO), Netherlands
- FNV, Netherlands
- Handel Anders! coalitie, Netherlands
- Milieudefensie, Netherlands
- Transnational Institute, Netherlands
- Vrijschrift, Netherlands
- Water Justice & Gender, Netherlands
- WO=MEN Dutch Gender Platform, Netherlands
- De Groenen, Netherlands
- CAFSO-WRAG for Development, Nigeria
- Center for Peace Education and Community Development, Nigeria
- Civil Society Coalition on Sustainable Development, Nigeria
- Enowem Network, Nigeria
- Girls Voices Initiative, Nigeria
- IMAAP Projects, Nigeria
- Nigeria Private Sector Alliance (NiPSA), Nigeria
- Nigerian Women Agro Allied Farmers Association, Nigeria
- Peace Point Development Foundation (PPDF) , Nigeria
- Society for the Improvement of Rural People(SIRP), Nigeria
- Youth and Small Holder Farmers Association., Nigeria
- Association ESE, North Macedonia
- Campaign For the Welfare State, Norway
- EL og IT Forbundet, Norway
- Handelskampanjen, Norway
- Norwegian Forum for Development and Environment, Norway
- Oslo/Akershus Handel og Kontor , Norway
- Spire, Norway
- All Pakistan Labour Federation, Pakistan
- Human Unity Movement, Pakistan
- Roshni Tariqiyati Tanzeem, Pakistan
- Pakistan Kissan Mazdoor Tehreek , Pakistan
- Roots for Equity, Pakistan
- Badil , Palestine
- Hermanas de la Misericordia , Panama
- Sociedad de Economía Política del Paraguay, Paraguay
- COOPERACCION, Peru
- CUT Perú (Central Unitaria de Trabajadores del Perú), Peru
- FENTAP, Peru
- Grupo Emancipador, Peru
- ISP – PERÚ , Peru
- Red Peruana por una Globalización con Equidad (RedGE), Peru
- Freedom from Debt Coalition, Philippines
- Sanlakas Philippines, Philippines
- Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO), Philippines
- Trade Justice Pilipinas, Philippines
- WomanHealth Philippines, Philippines
- Institute of Global Responsibility (IGO), Poland
- TROCA- Plataforma por um Comércio Internacional Justo, Portugal
- ZERO – Association for the Sustainability of the Earth System, Portugal
- SAGAMBA, Rwanda
- Ole Siosiomaga Society Incorporated (OLSSI), Samoa
- Samoa Workers Congress, Samoa
- Ekvilib Institute, Slovenia
- African Coalition for Corporate Accountability, South Africa
- Coalition of African Lesbians, South Africa
- SEATINI- South Africa, South Africa
- Trade Collective, South Africa
- Association of Physicians for Humanism, South Korea
- Center for Health and Social Change, South Korea
- Knowledge Commune, South Korea
- Korea Breastfeeding Network , South Korea
- Korean Dentists Association for Healthy Society, South Korea
- Korean Federation Medical Group for Health Right (KFHR), South Korea
- Korean Metal Workers’ Union (KMWU-KCTU), South Korea
- Korean Pharmacists for Democratic Society, South Korea
- MINBYUN Trade Committee, South Korea
- PSPD (People’s Solidarity for Participatory Democracy), South Korea
- Africa Women’s Rights Empowerment Institute (AWoRE Institute), South Sudan
- South Sudan Human Rights Society for Advocacy (SSHURSA), South Sudan
- AFDMD-Asociación Federal para el Derecho a Morir Dignamente, Spain
- Amigas de la Tierra, Spain
- Asociacion de Usuarios de Sanidad de la Region de Murcia , Spain
- ATTAC Catalunya, Spain
- ATTAC España, Spain
- Campaña No a los Tratados de Comercio e Inversión, Spain
- Campanya Catalunya No als Tractats de Comerç i Inversió, Spain
- CCOO – CS de Comisiones Obreras, Spain
- CCOO Aragón, Spain
- Coordinadora Estatal de Comercio Justo, Spain
- Debt Observatory in Globalisation (ODG), Spain
- Ecologistas en Acción, Spain
- Ecoloxiste n’Aición d’Asturies, Spain
- Entrepueblos/Entrepobles/Entrepobos/Herriarte, Spain
- Federación de Asociaciones para la Defensa de la Sanidad Pública , Spain
- LA TENDA DE TOT EL MÓN, Spain
- Mareas Blancas / White Tides Spain, Spain
- Medicusmundi Spain, Spain
- Novact, Spain
- Observatori DESC, Spain
- Observatorio de la Deuda en la Globalizacion, Spain
- OME (Asociación vasca de Salud Mental), Spain
- Ong AFRICANDO, Spain
- Osalde, Spain
- SETEM Catalunya, Spain
- Solidaridad Internacional Andalucia, Spain
- UGT, Spain
- Unión Sindical Obrera (USO), Spain
- Unión Universal Desarrollo Solidario, Spain
- National Fisheries Solidarity Movement, Sri Lanka
- Jordens Vänner – FoE Sweden, Sweden
- Alliance Sud, Switzerland
- Arbeitsgruppe Schweiz Kolumbien ask! (Swiss Working Group on Colombia), Switzerland
- MultiWatch, Switzerland
- Public Eye, Switzerland
- SOLIFONDS, Switzerland
- Mom Loves Taiwan Association, Taiwan
- Governance Links , Tanzania
- HakiMadini, Tanzania
- National Union of Mine and Energy Workers of Tanzania (NUMET), Tanzania
- Sustainable Holistic Development (SUHODE), Tanzania
- AIDS Access Foundation, Thailand
- FTA Watch, Thailand
- FENASSEP, Togo
- Les Amis de la Terre-Togo, Togo
- Humanitaire Plus, Togo
- Network of Rural Women Producers Trinidad & Tobago, Trinidad & Tobago
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[contact-form-7 id=”5653″ title=”Investment and Corona”]ANNEX
How to implement the proposals from the open letter on ISDS and COVID-19?
This annex is a companion to the open letter to governments on ISDS and COVID-19 signed by 630 organisations from around the world.
The letter addresses the imminent threat of ISDS lawsuits as the result of the COVID-19 pandemic and the related unfolding economic crises[8] and urges governments to take immediate action to ensure that the duty of governments to regulate in the public interest is safeguarded and put beyond the scope of ISDS claims.
The letter proposes six measures governments should urgently take. These proposals are legally sound and within the full prerogative of governments’ sovereignty to implement.
This annex aims to give more details about the legal avenues governments can take to implement the proposals from the letter.
1- Permanently restrict the use of ISDS in all its forms in respect of claims that the state considers to concern COVID-19 related measures.
This measure is already gathering wide support worldwide. There are, however, different ways to implement this proposal:
- Governments can, in some treaties, withhold consent to ISDS. There are 98 of the 2577 IIAs mapped by UNCTAD that require case by case consent to ISDS disputes. This means that investors cannot sue unless governments explicitly agree to be sued. Therefore, withholding consent to arbitrate is the legal right of governments and it is an easy step to take.
- In 96% of the IIAs in force, governments have agreed to automatic consent. However, governments have the option to withdraw consent to ISDS. This legal avenue has already been flagged years ago by academics and more recently, detailed language has been developed on how this could be achieved.
It is important to note that while this measure will send a strong signal to the international community about the desire of governments to put a break to ISDS, it is unlikely to stop the actual filing of ISDS cases by investors. In the past, even after Latin American governments decided to withdraw consent to be sued at the International Centre for Settlement of Investment Disputes (ICSID), investors continued suing and ICSID arbitrators accepted to decide on those disputes. - One other way to restrict the use of ISDS would be by following the IISD proposal of an “Agreement for the coordinated suspension of investor-state dispute settlement with respect to COVID-19 related measures and disputes”. IISD proposes the signing of a multilateral agreement, but also offers the option of a bilateral suspension agreement that could be negotiated between countries or blocs of countries. Countries resorting to bilateral solutions can still participate in multilateral efforts as a parallel, longer-term effort.
When we refer to ISDS in all its forms, we are making reference to other models of investor-state dispute settlement beyond the traditional included in most international investment agreements. In particular, the phrase is meant to include the investment court system proposal as embedded in the European Union (EU)-Canada Comprehensive Economic and Trade Agreement (CETA), EU-Singapore and EU-Vietnam free trade agreements. It would also include the Multilateral Investment Court proposal currently being discussed in the United Nations Commission on International Trade Law (UNCITRAL).
2- Suspend all ISDS cases on any issue against any government while it is fighting COVID-19 crises, when capacity needs to be focussed on the pandemic response.
There are currently 397 open ISDS cases against 83 countries. All of these governments, one way or another, are dealing with the COVID-19 crisis. Yet, they also have to worry about responding to the demands of the ongoing ISDS cases.
For example, Bolivia, has already asked tribunals in two ongoing cases (Glencore v. Bolivia and Orlandini and Compania Minera Orlandini v. Bolivia) to suspend proceedings explaining the government was unable to prepare its defense due to the pandemic crisis. In both cases, the Tribunals rejected the request for suspension of the cases. This is unacceptable at a time when the World Health Organization’s Director General has said the whole of government must refocus on suppressing and controlling COVID-19.
Furthermore, from 1 March until 25 May 2020 when most governments were in the midst of the pandemic crisis, 12 new ISDS cases were filed at the International Centre for Settlement of Investment Disputes (ICSID) alone.[9] Most of those were against Latin American countries, and Colombia was the worst hit with three lawsuits.
Unfortunately, it is not in governments’ power to suspend ongoing proceedings. It is the decision of investors and arbitrators. So, in this case, governments will need to come together in a political declaration, which gathers the support of key international institutions, asking for a moratorium on all ongoing ISDS cases.
3- Ensure that no public money is spent paying corporations for ISDS awards during the pandemic.
Foreign debt moratoriums and cancellation programmes have recently received widespread support, including from international bodies such as the World Bank, UNCTAD among others.
From a policy perspective, the same rationale that applies to foreign debt payments should apply to ISDS debt. It would be rational for governments to stop payment of outstanding debts as a result of any ISDS awards while they face the mounting health and economic crises related to COVID-19, as well as reject payment of any ISDS awards related to actions that the state considers to concern COVID-19 related measures. Countries should discuss relief or restructuring of the payments with the creditors, in this case investors who have won an ISDS case.
Legally, ISDS awards can be set aside by the courts of the country that is the ‘seat’ of the arbitration, based on grounds set in the national law of arbitration. Generally, the grounds for annulment are limited and the number of successful annulments is consequently low. Grounds included in national arbitration laws, usually based on the UNCITRAL Model Law or the New York Convention, are limited to validity of the form and substance of the arbitration agreement, procedural elements pertaining to the constitution of the arbitral tribunal and compliance with its mandate, and public policy grounds. Given the exceptional circumstances attached to the COVID-19 crisis, states could take action to clarify these grounds in their national laws, particularly making ISDS awards that result from claims challenging COVID-19 related measures and undermining the capacity of the losing state to respond to the national COVID-19 crisis, incompatible with public policy considerations. Moreover, states could consider clarifying that the validity of the arbitration agreement does not hold where a respondent state had unilaterally withdrawn consent to ISDS as a result of the COVID-19 pandemic.
4- Stop negotiating, signing, and or ratifying any new agreements that include ISDS.
There are hundreds of investment treaties that are currently under negotiation or have been signed but await ratification to enter into force. It is the prerogative of any government to put a stop to that process.
For example, recently the government of New Zealand decided to oppose ISDS in new agreements, including in the Regional Comprehensive Economic Partnership (RCEP). Also, all governments part of RCEP negotiations decided to exclude ISDS from the negotiations.
5- Terminate existing agreements with ISDS, ensuring that ‘survival clauses’ do not allow cases to be brought subsequently.
There are four possible avenues for governments to terminate their current investment agreements:
- Multilateral termination: On 5 May 2020, 23 European Member States signed a joint agreement for the termination of intra-EU bilateral investment treaties among themselves. This is a clear example of how multilateral termination could be achieved.
- Unilateral termination: many other countries have terminated bilateral investment treaties unilaterally (e.g. South Africa, Indonesia, India, Ecuador, Bolivia, Venezuela, Tanzania, and Italy, among others).
- Mutual consent of the parties involved based on Article 54(b) of the Vienna Convention on the Law of Treaties (examples of recent termination by mutual agreement include Czech Republic terminated its BITs with Denmark, Italy, Malta and Slovenia; also Argentina and Indonesia agreed to terminate their BIT).
- Joint agreement of the governments in free trade agreements to remove ISDS from the investment chapter.[10]
The easiest option to pursue (unilateral termination), would trigger the survival clause which allows investors that were already in the country at the time of termination to continue suing the government for a set time (up to 20 years) after the treaty was terminated.
It is worth noticing that options 1, 3 and 4 could annul the effects of survival clauses, so investors would not be allowed to continue suing the government after the termination of the treaty.
IISD has recently published a briefing on Best Practices about “Terminating a Bilateral Investment Treaty” that offers specific language and addresses different considerations to take into account for governments.
It is worth mentioning that recent studies have found that termination of investment agreements does not affect investment flows.
6- In light of threats exposed by the pandemic, comprehensively review existing agreements that include ISDS to see if they are fit for purpose
Twenty years after most of these treaties were signed, there is a clear need to carry out comprehensive reviews of these type agreements. This need becomes even more urgent seeing the threats that the international investment regime poses in light of the current pandemic. Assessing the risks of these agreements vis a vis the benefits becomes imperative.
During the last decade, several governments have launched comprehensive reviews of their investment treaties. Among those, South Africa and Ecuador for example carried out publicly available reviews following different methodologies. In all cases, however, they ended up establishing that the risks of the agreements outweighed any possible benefit, and therefore recommended that governments roll back ISDS commitments and refrain from committing to ISDS in the future.
Furthermore, academics like Lauge N Poulsen, Jonathan Bonnitcha and Jason Webb Yackee have developed an analytical framework for assessing costs and benefits of Investment Protection Treaties, that provides clear methodology for how this type of assessment could be implemented.
[1] See for example: https://www.alston.com/en/insights/events/2020/04/the-coming-wave-of-covid-19-arbitration/ , https://www.ropesgray.com/en/newsroom/alerts/2020/04/COVID-19-Measures-Leveraging-Investment-Agreements-to-Protect-Foreign-Investments , https://www.reedsmith.com/en/perspectives/2020/05/reed-smith-quarterly-international-arbitration-focus , https://globalarbitrationreview.com/article/1222354/could-covid-19-emergency-measures-give-rise-to-investment-claims-first-reflections-from-italy , https://www.acerislaw.com/the-covid-19-pandemic-and-investment-arbitration/
[2] https://www.iisd.org/library/investor-state-claims-amidst-covid-19
[3] https://unctad.org/en/PublicationsLibrary/diaepcbinf2020d3_en.pdf
[4] http://ccsi.columbia.edu/2020/05/05/isds-moratorium-during-covid-19/
[5] https://www.law360.com/legalethics/articles/1261213/third-party-funders-business-is-booming-during-pandemic
[6] https://investmentpolicy.unctad.org/investment-dispute-settlement
[7] Calculation based on the UNCTAD database for cases up to December 2018. Out of the 310 disclosed cases which had been decided in favor of the investor or settled, information on damages was provided for 213 cases (69%).
[8] https://longreads.tni.org/pandemic-profiteers/, https://longreads.tni.org/cashing-in-on-the-pandemic; https://www.iisd.org/library/investor-state-claims-amidst-covid-19; and https://unctad.org/en/PublicationsLibrary/diaepcbinf2020d3_en.pdf
[9] 12 ISDS cases (11 based on IIAs and 1 based on a contract) were filed against the following countries: Colombia (3 cases), Peru (2), Panama (1), Mexico (1), Dominican Republic (1), Norway (1), Croatia (1), Serbia (1), Romania (1)
[10] For example the recently concluded Agreement between the United States of America, the United Mexican States, and Canada (USMCA) amended the North American Free Trade Agreement (NAFTA) to completely remove ISDS between the US and Canada and, partially, between US and Mexico. https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/agreement-between.