Europeans Question Investor Dispute Settlement in TTIP as US Industry Insists on its Inclusion
The European Union rattled many U.S. trade and business advocates on Jan. 13, with the release of a report that illustrates the European community’s deep-seated uncertainty over an investor-state dispute settlement provision in the Transatlantic Trade and Investment Partnership (here). The EU is still on course to include ISDS in TTIP so long as “a number of conditions are met,” the report says. The report draws on nearly 150,000 online replies to its request for consultation with European citizens between March and July 2014.
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Many of the respondents warned against weakening government rights to regulate industry, while others voiced concern that ISDS doesn’t go far enough to protect investors. The investor-state mechanism, which would act as an independent tribunal, has emerged as a sticking point in negotiations, alongside online privacy, regulatory integration in the financial sector and other areas of the talks.
Several U.S. trade associations and coalitions insisted ISDS is included in a final TTIP pact. “Such provisions have never undermined or limited in any manner the legitimate ability of States to regulate in the public interest,” said one coalition, which includes the National Foreign Trade Council, the U.S. Chamber of Commerce and several European allies (here). “Further, recent trends in international investment agreements that enhance transparency and provide other procedural safeguards are important to include between the United States and EU.”
The Office of the U.S. Trade Representative says the inclusion of ISDS in TTIP will not threaten regulatory rights (see 14032721). After taking over as the new European trade commissioner in recent months, Cecilia Malmstrom said ISDS may not make the cut in a final TTIP package (see 1411190021). Many House Democrats reject the mechanism (see 1412180016).