Costs of privileged rights for investors set to swell under US and Canada agreements New research today reveals that European governments have already paid at least €3.5 billion to private investors due to a clause in international trade deals. The mechanism – known as investor-state dispute settlement – is set to become more widely used if EU trade deals with Canada and the US go ahead as planned. The new analysis by Friends of the Earth Europe shows the extent to which the inclusion of these special rights for investors in previous trade treaties has allowed corporations to sue European governments in secret courts. This phenomenon risks dramatic expansion given the unprecedented scale of the EU-Canada and EU-US trade agreements. The investor-state dispute settlement (ISDS) mechanism provides a way for corporations to seek compensation from governments if new laws get in the way of their returns on investment. According to the research, Eastern European member states have been hit hardest by claims for compensation. Poland tops the table, having reached a settlement for €2 billion with Eureko, a Dutch insurance company. Environment-related laws are the most often challenged legislation, accounting for two thirds of cases recorded. The research encompasses 127 investor-state dispute cases from bilateral investment treaties and other international treaties. Given the secretive nature of the arbitration process, some information on the amounts claimed for and awarded to companies is not available.
Posted on: Thu, 04 Dec 2014 08:38:59 +0000
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