TRIBUNAUX VIP

The report examines the Investor-State Dispute Settlement (ISDS) system, describing it as a "parallel justice system" that privileges wealthy investors and multinational corporations over public interests. Through ten case studies across Europe, Africa, Asia, and Latin America, the document illustrates how ISDS is used to challenge environmental protections, public health measures, and land rights. It specifically criticizes the European Union's efforts to institutionalize the system through the Investment Court System (ICS) and a proposed Multilateral Investment Court, arguing these reforms do not address the fundamental imbalance of power. The report concludes that ISDS creates a "regulatory chill," where governments avoid passing progressive laws to avoid multi-billion dollar lawsuits, and calls for the complete dismantling of these "VIP courts."

• The ISDS system allows foreign investors to sue states in private international arbitration tribunals, often bypassing national courts to protect private profits over public interests.
• ISDS claims have reached a massive scale, with nearly 1,000 public cases involving 117 countries and a total of 623 billion dollars claimed by investors as of January 1, 2019.
• The system creates a "regulatory chill" where the mere threat of expensive litigation discourages or alters government policies on climate, health, and the environment.
• In France, the threat of an ISDS claim by the Canadian company Vermilion under the Energy Charter Treaty (ECT) contributed to the weakening of a 2017 law intended to end hydrocarbon extraction by 2040.
• The Energy Charter Treaty (ECT) is identified as a particularly dangerous agreement that allows fossil fuel companies to challenge climate policies, exemplified by Vattenfall's 6.1 billion euro claim against Germany for its nuclear phase-out.
• ISDS tribunals often ignore human rights and the rights of indigenous peoples, as seen in Zimbabwe where arbiters ordered the restitution of land to European investors, potentially displacing 6,000 indigenous families.
• In Colombia, the pharmaceutical giant Novartis used the threat of ISDS to prevent the government from issuing a compulsory license for the cancer drug Glivec, which would have lowered prices for patients.
• The European Union's proposed Investment Court System (ICS) and Multilateral Investment Court are criticized for institutionalizing ISDS without removing the fundamental imbalance that grants rights to investors without imposing obligations.
• Third-party funding (TPF) by hedge funds and insurance companies encourages speculative litigation by removing the financial risk for corporations, often targeting struggling states.
• Arbitrators in the ISDS system are often criticized for conflicts of interest, as they are private lawyers who may act as both judges and representatives for investors in different cases.

APA

Verheecke, L., Eberhardt, P., Olivet, C., & Cossar-Gilbert, S. (2019). TRIBUNAUX VIP. Friends of the Earth International. https://www.foei.org/wp-content/uploads/2020/12/foe-red-carpet-courts-FR-FINAL-WEB.pdf

Chicago

Verheecke, Lora, Pia Eberhardt, Cecilia Olivet, and Sam Cossar-Gilbert. TRIBUNAUX VIP. Friends of the Earth International, 2019. https://www.foei.org/wp-content/uploads/2020/12/foe-red-carpet-courts-FR-FINAL-WEB.pdf.

Wikipedia

{{cite report |last1=Verheecke |first1=Lora |last2=Eberhardt |first2=Pia |last3=Olivet |first3=Cecilia |last4=Cossar-Gilbert |first4=Sam |title=TRIBUNAUX VIP |publisher=Friends of the Earth International |date=July 2019 |url=https://www.foei.org/wp-content/uploads/2020/12/foe-red-carpet-courts-FR-FINAL-WEB.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{verheecke2019tribunaux, author = {Verheecke, Lora and Eberhardt, Pia and Olivet, Cecilia and Cossar-Gilbert, Sam}, title = {{TRIBUNAUX VIP}}, institution = {Friends of the Earth International}, year = {2019}, month = jul, url = {https://www.foei.org/wp-content/uploads/2020/12/foe-red-carpet-courts-FR-FINAL-WEB.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }