India, along with Brazil, Argentina and some other nations, has rejected an informal attempt by the European Union and Canada to work towards a global investment agreement that would incorporate a contentious ISDS mechanism.
While India has been reshaping its arbitration laws and investment climate, the jury is still out on whether these measures will actually help create a more secure legal environment for investors.
Due to inherent systemic issues with specialised and supranational courts, a multilateral investment court would create a high risk on expansive interpretations of investors’ rights.
The Indonesian government should stick to its policy of removing the investor-state dispute-settlement (ISDS) mechanism from its bilateral investment or trade treaties.
The European Union and Canada will launch a proposal for a new global investment court system for settlements of disputes between states and foreign investors over discriminatory treatment.