When the Peruvian government denied a request from the U.S.-based Renco Group for a third extension of its deadline to comply with its contractual commitment to remediate environmental and health problems caused by its toxic metal smelting operation, Renco launched an $800 million ISDS case against the government under the U.S.-Peru FTA. After having already granted two extensions to the company, the government ordered the plant closed, pending compliance. Even though the smelter is now shut down because of bankruptcy, the mere filing of the ISDS case assisted Renco in its efforts to evade cases brought in U.S. courts against the firm on behalf of Peruvian children allegedly injured by the smelter’s emissions.
Shows again how the effects of ISDS cascade from one country to another; and the general disinclination of the international investor class to adhere to pesky state requirements for permits, feasibility studies, deadlines, contracts, and so on.