Richard Kozul-Wright, director at the United Nations Conference on Trade and Development (UNCTAD), said support for investor-state dispute settlement (ISDS) but not for state-investor was “incongruous”.
An international tribunal will begin hearing a multi-billion dollar case this week that the US private equity firm Lone Star filed against South Korea’s government over tax and other disputes surrounding its asset sell-offs in Korea.
A group of legal and economic luminaries have signed a letter to Congressional leaders urging them to oppose Investor-State Dispute Settlement (ISDS) provisions in proposed trade deals.
According to UNCTAD, 40% of all new ISDS cases in 2014 were initiated against developed countries (the historical average is 28%). A quarter of them are intra-EU disputes.
In anticipation of an imminent ruling from a little-known arbitration tribunal at the World Bank that could force El Salvador to pay Canadian-Australian mining firm OceanaGold US$301 million, a Salvadoran delegation is visiting Canada to discuss how investor-state arbitration threatens democratic decision-making, public health and the environment here and beyond our borders.
The United States has rejected a European Union proposal to establish a global investment court aimed at resolving disputes arising from a massive free trade treaty with the US.
European Trade Commissioner Cecilia Malmström tried to convince MEPs that there are ways to keep the Investment-State Dispute Settlement in the Transatlantic Trade and Investment partnership deal. But unimpressed lawmakers failed to greet it as a full-fledged reform.
From an international policy point of view, South Africa’s denunciation of BITs is reasonable. It may even be seen as a refreshing retreat from a legal quagmire. But the domestic reality requires wider consideration.