A Review On The Case Of Eli Lilly And Company Versus Canada

An â€Å"Investor –state dispute settlement† (ISDS) is method of public international law which gives legal right for those who invested in a foreign country a chance to challenge a regulation, judicial or administrative ruling or and government decision of a hosted country. Investors are those who purchase properties or businesses in another country. ISDS allows the foreign investor to circumvent domestic courts and to bring sue against a hosted country government. This argument mediated by a panel of private international arbitrators. The provisions for ISDS are written in several bilateral investment treaties. ISDS was created to reduce the political risks related to rapidly increasing foreign investment, and make the commitments made by host States in investment treaties more easily enforceable (EPRS, 2014). In the case of Eli Lilly and Company versus Canada, the provision was written in Chapter 11 of the North American Free Trade Agreement(NAFTA)(wikipedia.org). ISDS often takes place under the supervision of arbitral tribunals such as the World Bank and United Nations. ISDS has recently become a primary topic of controversy during the signing of Transatlantic Trade and Investment Partnership (TTIP) and other bilateral trade agreements. Some individuals argue that the focus on ISDS is either illegal, pointless and does not affect the pipeline of Foreign Direct Investment (FDI) in a country. 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