The unsustainable political economy of investor–state dispute settlement mechanisms¹

Investor–state dispute settlement mechanisms were intended to protect companies from the Global North against expropriation by South countries. Since 2000, investor–state have increasingly been used Northern countries obtain compensation for and constrain policy decisions around nationalisation remunicipalisation, as well environmental or social regulation of service provision that threatens commercial interests. Social movements governments alike resisted mechanisms, despite power wielded multinational companies, global trend is now exclude new investment treaties. The purpose this article provide a political-economy analysis processes supporting contesting role in international treaties, include activity at national, sub-national levels. ensuing conflicts are analysed terms post-colonial contradictions over sovereignty under globalisation, continued contestation public sector climate change policies. Points practitioners probability investor success with mechanism claims should not be overestimated, assessments basis prospects such cases subject critical scrutiny. Governments aware widespread popular antagonism towards trends remove clauses agreements. They also review all bilateral free trade agreements Energy Charter Treaty country has ratified assess potential relative advantages retention leaving.