ISDS (Investor-State Dispute Settlement)

Investor-State Dispute Settlement (ISDS) is a mechanism that allows investors from one country to bring claims against another government if they believe their investments have been unfairly treated or expropriated, violating international agreements. It provides a neutral forum, often via international arbitration, to resolve disputes without going through national courts. ISDS aims to protect investors’ rights while encouraging foreign investment, but it has also faced criticism regarding its impact on sovereignty and regulatory freedom. Overall, it balances investor protections with the need for governments to regulate in the public interest.