Palmer's case, initiated by his Singaporean investment company Zeph Investments, aimed to challenge legislation that capped damages, which could have had the potential to bankrupt Western Australia if successful.

The tribunal ordered Palmer to pay approximately $13.6 million in legal costs, highlighting issues with the international dispute settlement system that allows foreign investors to sue states outside domestic courts.

Palmer's political messaging, including calls for Australians to 'wake up,' contrasted sharply with his legal efforts involving complex international legal proceedings.

Palmer's claim was based on allegations of breaches of the ASEAN-Australia-New Zealand Free Trade Agreement related to legislation that limited damages claims against the state.

The Australian government criticized the case as an unnecessary and costly defense of an investor-state claim, with the defense costing over $13 million.

Legal experts have raised concerns about the tribunal system's lack of safeguards and the potential for investors to make exaggerated claims, questioning the fairness and transparency of such disputes.

The tribunal, the Permanent Court of Arbitration, rejected Palmer's claim on jurisdictional grounds, stating he was not a foreign investor and thus not entitled to benefits under the free trade agreements.

Clive Palmer, a notable Australian businessman and politician, lost a significant legal challenge against the Australian government over a blocked mining project in Western Australia, where he sought nearly $200 billion in damages.

The dispute involved allegations of violations of a free trade agreement between Australia, New Zealand, and ASEAN, which Palmer claimed supported his case.

Australian Attorney-General Michelle Rowland clarified that Palmer is not considered a 'foreign investor' under trade agreements, which affected his legal standing.

The Permanent Court of Arbitration dismissed Palmer's case, ruling it had no jurisdiction because he was not recognized as a foreign investor eligible under the trade agreements.

This legal defeat follows Palmer's previous loss in Australia's high court in 2021 and comes amid ongoing government actions, such as blocking his 2023 bid to develop a coal mine near the Great Barrier Reef for environmental reasons.