Protecting Against Investor–State Claims Amidst COVID-19: A call to action for governments
This commentary takes stock of emergency measures taken to curb the spread of COVID-19 and provides governments with options for avoiding a surge of investor-state claims challenging those measures.
Governments are acting to curb the spread of COVID-19 through emergency interventions such as shutdowns and strict containment, and measures to ensure supplies of essential foods, medical equipment, and health care services.
With many of these emergency measures hitting businesses hard, they are creating an unprecedented risk of foreign investors suing governments under the web of investment treaties concluded across the globe. Our call to action is for governments to come together to either suspend treaty-based investor–state arbitration for all COVID-19 related measures or clarify the application of international law defences during these extraordinary times.Until such joint action comes into effect, governments can limit the risks of international arbitration by withdrawing consent to it.
You might also be interested in
Decoding the Belt and Road Initiative’s Legal Architecture
This article unpacks the Belt and Road Initiative's legal architecture—covering hard law (such as treaties and contracts), soft law (such as memoranda of understanding), and the unique role of China's state-owned enterprises—and sets out recommendations for host country policy-makers on how to navigate this hybrid legal environment.
What Happened in Santa Marta?
What happened at the first international conference on transitioning away from fossil fuels? IISD experts share 7 takeaways and discuss what comes next.
Tax Incentives in National Investment Laws
This report maps the design, legal structure, and governance arrangements of tax incentives across 105 national investment laws to support better coordination among the institutions that shape these policies and help countries attract quality investment.
Understanding Investor–State Dispute Settlement in the Mining Sector
This brief introduces investor–state dispute settlement (ISDS) for mining policy-makers and shows how understanding it helps governments design clearer rules, manage permits and contracts, prevent costly disputes, and protect policy spaces while maintaining a predictable investment climate.