s2b-twitter-profile2Why the Commission’s proposal for an “Investment Court System” still fails to address the key problems of foreign investors’ privileges

Analysis by the Seattle to Brussels Network

29 September 2015

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On 16 September European Trade Commissioner Malmström presented a draft text for a chapter on investment protection and investor to state dispute settlement to be included in the Transatlantic Trade and Investment Partnership (TTIP) with the US. The draft is tabled for consultation with the EU member states and for discussion with the European Parliament before presenting it as a formal proposal to the USi.

The European Commission has presented the draft as a proposal for “a new and transparent system for resolving disputes between investors and states – the Investment Court System. This new system would replace the existing investor-to-state dispute settlement (ISDS) mechanism in all ongoing and future EU investment negotiations, including the EU-US talks on a Transatlantic Trade and Investment Partnership (TTIP)”.

The draft translates into legal text a number of proposals to “further improve” investment protection standards and investor-state dispute settlement (ISDS) presented in a concept paper on 5 May 2015ii and in a speech by Commissioner Malmström before the European Parliament’s international trade committee (INTA) on 18 Marchiii.

The Seattle to Brussels Networkiv commented on these proposals in a paper released on 6 Mayv.

This fore lying analysis builds on that paper.

The Seattle to Brussels Network remains of the opinion that the Commission’s proposals to date:

1) ignore the outcome of the Commission’s own public consultation on the issue;

2) would dramatically expand the reach of ISDS, increasing the likelihood of claims against the EU and its member states;

3) confirm that the ISDS system was not meaningfully reformed in the EU-Canada trade agreement (Comprehensive Economic and Trade Agreement, CETA) and that CETA should not be signed;

4) ignore the elephant in the room: that there is no need for ISDS;

5) and do very little to address the fundamental problems of the ISDS system. Lire la suite »