ISDS Mechanism

The ISDS (Investor-State Dispute Settlement) mechanism allows investors from one country to directly sue another country if they believe a government has unfairly treated their investments, such as through expropriation or discriminatory policies. Instead of going through national courts, disputes are settled through independent arbitration panels outside the domestic legal system. This process aims to protect international investors and promote investment by providing a neutral and specialized forum for resolving disputes efficiently and predictably. However, it can raise concerns about national sovereignty and the balance of power between governments and corporations.