Agricultural Investments and International Arbitration Joe Zang, Marquita Davis and Carin Smaller March, 2015

CONTENTS International arbitration: what? Facts & figures Agriculture cases that IISD is aware of What government measures are being challenged? Main concerns with international arbitration Conclusions

1. International arbitration – what? Definition: Foreign investors can file claims against states to resolve disputes arising under investment treaties, contract or domestic law. Known as investor-state dispute settlement (ISDS).

2. Facts & figures Over 600 cases in the last 15 years

3. Agriculture cases that IISD is aware of: 25 * Data collected from ICSID, IAReporter.com, ITAlaw.com

3. Agriculture cases that IISD is aware of: sub-sectors * Data collected from ICSID, IAReporter.com, ITAlaw.com

4. What government measures are being challenged? Reducing or terminating concessions Withdrawing licences or permits Land reform/redistribution Promoting national economic development (employment, tech transfer, taxes) Environmental laws (use of chemicals) Regulatory action in times of crisis or to comply with other international agreements Ag policies (import restrictions, tax, quotas)

5. Main concerns with international arbitration Expansive scope Many cases unknown because of lack of transparency Cost No right of appeal

6. Conclusions This is just the beginning Can undermine efforts to promote responsible agricultural investment Need carefully drafted domestic laws, contracts and treaties to safeguard policy space Domestic courts and mediation as the first forum of choice

Thank You Carin Smaller