Investor-State Dispute Settlement

Investor-State Dispute Settlement (ISDS) is a legal process that allows foreign investors to sue countries if they believe their rights under international agreements are violated. If an investor thinks a government has unfairly treated them—like expropriating property without compensation—they can bring their case to an independent tribunal. This system aims to protect investments and encourage foreign investment by providing a mechanism for resolving disputes without relying on domestic courts. Critics argue it can undermine national sovereignty and favor businesses over public interest, while supporters claim it ensures fair treatment for investors.