Investor-State Dispute Settlement (ISDS)
Investor-State Dispute Settlement (ISDS) is a mechanism that allows foreign investors to sue host countries for alleged discriminatory practices or unfair treatment. When an investor believes their rights under an international investment agreement have been violated, they can bring their case before an independent tribunal, rather than relying solely on the host country's domestic courts. This process aims to ensure that investors are protected and compensated for any damages, encouraging foreign investment by providing a neutral platform for resolving disputes that may arise between investors and governments.
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Investor-State Dispute Settlement (ISDS) is a mechanism that allows foreign investors to sue countries for damages if they believe their investments are unfairly treated or harmed by government actions. This legal process typically occurs through international arbitration, rather than local courts, providing a neutral platform for resolving disputes. ISDS aims to protect investors from political risks and ensure a stable investment climate, but it has faced criticism for potentially undermining national sovereignty and prioritizing corporate interests over public policy. Overall, it plays a significant role in international trade and investment agreements.