The latest development in the contentious negotiations on the proposed Transatlantic Trade and Investment Partnership (TTIP) is that the EU has now put forward proposals for an Investment Court System (ICS) to replace the current and much criticised investor-state dispute settlement instrument.
The EU proposal sets out four basic guarantees and an investor could only bring a claim if one or more of those guarantees were breached, not just because they believed that new government regulation had affected their profits.
The ICS would comprise an Investment Tribunal with 15 judges: five EU nationals; five US nationals; and five nationals of other countries. There would be an Appeal Tribunal with six judges: two EU nationals; two US nationals; and two nationals of other countries with a clear set of rules and requirements to guarantee their competence and integrity.
The new system would also feature a mediation mechanism; tight deadlines; and provisions to make it easier for SMEs.
The Commission’s proposal for TTIP builds on reforms it has already included in the EU’s trade agreements with Canada and Singapore.