Investor-state dispute settlement

Okay kiddo, let me explain. Investor-state dispute settlement is like when two people or countries have an argument about money. Imagine you and your friend made a deal to share some candy, but then your friend didn't give you any. You feel upset and want to talk to them about it.

But sometimes, instead of talking it out, people take their argument to a judge or a group of judges called a tribunal. In the case of investor-state disputes, the judge or tribunal is made up of people who know a lot about international law and business.

Investor-state disputes happen when a company from one country invests money in another country to do business, like build a factory or buy some land. Sometimes, the company has a problem with the government of the other country, like if they pass a new law that the company thinks will hurt its business. The company might feel like the government is breaking a promise they made when the investment was made.

So, the company could take the government to the tribunal to try to get some compensation for the harm it thinks was caused. The tribunal will listen to both sides and decide who wins.

Some people like investor-state dispute settlements because they believe they protect companies from unfair treatment by governments. Others don't like them because they think they give too much power to companies and take away the power of governments to make laws that protect their citizens.

Does that make sense, kiddo?