August 27, 2026: Most Pacific Island countries have rejected deep sea mining because of its environmental impacts on fragile marine environments. As some Pacific governments consider whether to allow deep-sea mining, a new report by the Pacific Network on Globalisation (PANG), Undermining Sovereignty: De-Risking the Pacific from Investor-State Disputes in Deep-Sea Mining, examines what the threat of Investor-State Dispute Settlement (ISDS) means for Pacific Island countries.
ISDS is a mechanism in some trade agreements that allows foreign investors to bypass national courts and sue governments in international tribunals over government or court decisions, including environmental regulations, that affect their future profits.
The report, authored by Professor Emeritus Dr Jane Kelsey, draws on case studies from Tonga, Nauru, the Cook Islands and Papua New Guinea to examine how ISDS in government investment agreements, contracts with companies and other legal arrangements expose governments to investor claims for billions of dollars if they try to regulate deep-sea mining, protect the environment and communities and uphold Indigenous rights.
Pacific Island governments face growing pressure from mining companies and major powers seeking access to critical minerals to sign contracts or other arrangements that could expose them to ISDS claims.
The report recommends that Pacific governments should continue to refuse deep sea mining and ISDS arrangements. If they have ISDS arrangements, they should demand transparency and campaign for them to be reviewed and removed.