60th anniversary of Dutch bilateral investment treaties no cause for celebration
On 23 May, the Netherlands celebrates 60 years of bilateral investment treaties (BITs). The first BIT was signed with Tunisia in 1963. These treaties were intended to make an important contribution to protecting foreign investments by Dutch companies. A study by SOMO, Both ENDS and the Transnational Institute (TNI), however, shows that in practice they mainly give multinationals a powerful instrument that has far-reaching consequences people and the environment worldwide.
The study shows that the Netherlands is a real 'claim paradise' for multinationals. Companies use the Dutch BITs to lodge claims against countries that introduce legislation that harms their investments. This especially has negative consequences for people living in the Global South. Despite the Netherlands drawing up a new model to renegotiate these treaties in 2019, in reality nothing has yet changed. The three organisations call on the Netherlands to cancel all investment treaties.
The Netherlands plays a dubious pivotal role
The study by SOMO, Both ENDS and TNI shows that, as a conduit country for international capital flows, the Netherlands plays an important pivotal role in facilitating these kinds of claims. Companies that on paper are located in the Netherlands can easily lodge claims using Dutch BITs. No less than 40% of investments in countries with which the Netherlands has a BIT are made by 'letterbox companies'.
106 cases have already been initiated through Dutch BITs, worth a total of 105 billion dollars. That makes the Netherlands the second most popular country, after the United States, for lodging claims.
The majority (71%) of claims are submitted by letterbox companies of multinationals that take advantage of the Netherlands' treaties. Half of all the 'Dutch' claims are submitted by large companies with an annual turnover of more than a billion dollars, and rich individuals with personal capital of more than 100 million dollars. The fossil industry is one of the most active sectors in lodging claims under the Dutch BITs, accounting for a fifth of the total. The industry has claimed more than 55 billion dollars in compensation, of which 11.5 billion has already been paid out.
'Throughout 60 years of BITs, the Netherlands has played a major role in strengthening the power of multinationals worldwide,' says SOMO researcher Bart-Jaap Verbeek. 'In a world of rising inequality, support should be given not to the richest but to the people who need it the most.'
After having left the ECT, the Netherlands must also cancel its BITs
The climate panel of the United Nations warned last year that investors in fossil fuels can use the Investor-State Dispute Settlement (ISDS) mechanism to challenge climate legislation. The Netherlands has experienced this at first hand with the billion-dollar claims lodged by German energy companies RWE and Uniper via the Energy Charter Treaty (ECT) after the Dutch government's decision to close all coal-fired power stations from 2023 so as to achieve the Paris climate goals.
Because of the impact on its own climate policy, the Netherlands decided at the end of last year to leave the ECT. The three organisations say that the logical next step is to review the 75 existing BITs with ISDS. Companies like Shell, ExxonMobil, Total, ConocoPhillips and Eni have used Dutch treaties to lodge complaints against countries like Nigeria, the Philippines, Uganda and Venezuela in order to receive huge amounts of compensation for a variety of measures in the oil and gas sector.
''It is untenable for the Netherlands itself to leave an international treaty with ISDS because of the claims against our government," says Bart-Jaap Verbeek, "and still to play a pivotal role in claims against governments in the Global South."
What are bilateral investment treaties?
BITs are agreements between two countries intended to promote investments and protect them against unpredictable actions by overseas governments. The Netherlands now has 75 BITs with various countries around the world.
But these treaties make it more difficult for governments to introduce laws and rules to protect the environment, labour rights and public health. That is because BITs give investors the right to lodge claims against a government through the ISDS system if they believe that the new legislation causes harm to their investments.
That can lead to situations in which governments are forced to pay large sums of money to investors, or to withdraw legislation that is in the common interest. Moreover, as the costs of conducting legal proceedings against an investor are very high, many countries in the Global South fall victim to the 'legal blackmail': the threat of legal proceedings alone can persuade governments not to take action in the interests of their people, such as stricter environmental regulations or climate policy.
More information:
The report 'Dutch Bilateral Investment Treaties: 60 years of protecting multinationals'
For more information
Read more about this subject
-
Dossier /International trade and investment with respect for people and planet
The network of international trade and investment treaties is large and complex. The Netherlands alone has signed more than 70 bilateral investment treaties (BITs) and is party to the trade and investment agreements concluded by the EU, like the EU-Mercosur and EU-Indonesia trade deals.
-
Dossier /Investment treaties
Investment treaties must be inclusive, sustainable and fair. That means that they must not put the interests of companies before those of people and their living environment.
-
Dossier /Rights for People, Rules for Corporations – Stop ISDS!
Indigenous communities in Paraguay saw their attempts to regain their ancestral lands thwarted by German investors. In Indonesia, US-based mining companies succeeded to roll back new laws that were meant to boost the country’s economic development and protect its forests. This is the level of impact that investment treaties can have on social, environmental and economic development and rights. Why? Because of the ‘Investor-to-State Dispute Settlement’ clauses that are included in many such treaties.
-
Blog / 25 November 2025COP30 shows why dismantling ISDS is essential for real climate action
Standing in Belém during COP30, I felt the weight of the moment. We came to the Amazon hoping for decisive progress on phasing out fossil fuels, yet the final outcome fell far short of the ambition science and justice demand. The agreement brought welcome commitments on adaptation finance and global indicators, but it refused to confront the structural forces that make climate action so difficult.
-
Dossier /Trade agreements
International trade agreements often have far-reaching consequences not only for the economy of a country, but also for people and the environment. It is primarily the most vulnerable groups who suffer most from these agreements.
-
News / 5 November 2025Another ISDS claim hits the Netherlands: Petrogas sues over solidarity contribution and royalty regulations
SOMO and Both ENDS strongly condemn the newly revealed investor-state dispute settlement (ISDS) case filed by Petrogas, an Omani oil and gas company operating two shallow-water gas fields in the Dutch North Sea, against the Netherlands under the Netherlands-Oman bilateral investment treaty (BIT).
-
News / 5 November 2025Interview: Both ENDS at COP30 for Climate Justice and Systemic Change
Both ENDS is present at COP30 to advocate for genuine access to climate finance for locally led, gender-just climate solutions and the mechanisms that facilitate this, including those for farmer-led restoration. Furthermore, the organisation participates to ensure the crucial connection between the climate negotiations and the trade and investment frameworks that shape them.
Learn more about the Both ENDS team at COP30 below, and find all the activities and side-events in which Both ENDS will participate.
-
News / 5 November 2025Overview of Both ENDS events at COP30 in Belem, Brazil
Both ENDS is present at COP30 to advocate for genuine access to climate finance for locally led, gender-just climate solutions, and for the mechanisms that make these possible, including those supporting farmer-led restoration. The organisation also engages to highlight the crucial connection between climate negotiations and the trade and investment frameworks that shape them.
Below is an overview of the Both ENDS team at COP30 and a detailed look at the activities and side-events in which Both ENDS will participate.
-
Publication / 16 October 2025
-
Publication / 16 October 2025
-
News / 6 October 2025From Entebbe to Accra: civil society is rewriting the rules of investment
By Fernando Hernández Espino and Bart-Jaap Verbeek
Almost a year after African civil society gathered in Uganda to adopt the Entebbe Declaration, the call to transform international investment governance continues to gain strength. From the 6th to the 9th of October, over 50 civil society organisations from across West Africa, including from Ghana, Senegal, Nigeria, Côte d’Ivoire, Cameroon, Gambia, Sierra Leone, as well as from Kenya and Latin America, are convening in Accra to deepen and operationalise the Declaration’s vision.
-
News / 23 September 2025With the undemocratic splitting of the EU-Mercosur deal, Europe is missing the chance to lead on fair trade
Recently, many newspapers have written about Brussels’ rush to finalize the trade agreement between the EU and the South American Mercosur countries. According to the European Commission, national parliaments do not need to approve it because the trade part and the “political” part have been separated. This “splitting” means that the trade part can be approved as an EU-only decision by the European Council and the European Parliament, while national parliaments are sidelined and the political-cooperation part is postponed. Both ENDS and its partners are deeply concerned and are calling on the Dutch government to vote against this outdated agreement.
-
News / 22 September 2025EU-Indonesia Trade Deal Threatens Communities and Environment
On September 23th the European Union and Indonesia concluded their negotiations of the EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA), a free trade agreement between the EU and Indonesia. Both ENDS condemns this agreement for favoring corporate interests over those of local communities and the environment.
-
News / 11 September 2025EU-Mercosur: Small GDP Gain, Big Question Marks for Farmers and Democracy
A recent report by Wageningen Economic Research (WER) on the economic consequences of the trade agreement between the EU and Mercosur confirms what civil society organizations, policymakers, and trade unions have been signaling for years: this agreement does not offer a balanced perspective for farmers and the environment. Instead, it increases power inequalities and shifts burdens onto (small-scale) farmers. Moreover, the deal risks reinforcing unsustainable practices that complicate the climate transition and addressing environmental challenges in both the EU and Mercosur countries.
-
Blog / 12 August 2025Nickel mining for the energy transition: who is accountable for the damage?
Photo blog - In June, I travelled to Indonesia with our partner organization Puanifesto to research the impacts of nickel mining in East Sulawesi. On July 13th, the news broke that the European Union and Indonesia have reached a political agreement on a free trade agreement that was years in the making, called the Comprehensive Economic Partnership Agreement (CEPA). Nickel from Sulawesi is already being used in European cars. This makes it all the more important that we ensure that human and environmental rights are secured in mining and refining operations in Indonesia, before the road is opened to more extraction and exploitation for the European market. The conversations we have had with communities and workers on East Sulawesi show that more binding regulations are necessary to make this happen and ensure an energy transition that is socially and environmentally just.
-
Dossier /Towards a socially and environmentally just energy transition
To address the climate crisis we need to urgently transition away from fossil fuels towards clean, renewable energy. However, this transition is not only about changing energy sources. It requires an inclusive and fair process that tackles systemic inequalities and demanding consumption patterns, prioritizes environmental and social justice, and which does not repeat mistakes from the past.
-
Blog / 17 July 2025A disaster for farmers: here and there
The trade agreement with South America is harmful to farmers, the climate, and biodiversity, on both sides of the Atlantic. It’s time to take this deal off the table once and for all, argues Fernando Hernandez, Senior Policy Officer for Trade and Investment at Both ENDS.
-
Dossier /Fair Green and Global Alliance (FGG)
Together with civil society organisations from all over the world, the Fair Green and Global (FGG) Alliance aims for socially just, inclusive and environmentally sustainable societies in the Netherlands and the Global South.
-
Publication / 1 July 2025
-
News / 6 June 2025Both ENDS at the UN Ocean Conference: voicing our environmental justice concerns about the “Blue Economy”
Next week, the United Nations Ocean Conference will take place in Nice, France. This conference is focused on the conservation and sustainable use of coasts, seas and marine resources. Both ENDS colleague Murtah Shannon will be attending. We’ve asked him to explain a bit more about his plans.
