Stop The Trans Pacific Partnership -Australia 2 hrs · Article On the China FTA but provides this useful unpacking of ISDS In simple terms, ISDS allows foreign investors, especially large multinational corporations, to sue governments in an international forum over changes in regulation that negatively impact their investments. By the end of 2013, investors had launched at least 568 cases against 98 countries around the world. Investor complaints have covered the gamut of regulatory measures: from taxes to land-zoning decisions to bans on dangerous chemicals. Measures taken by governments to protect the environment have proven to be particularly susceptible. As countries around the world begin to take more serious action on climate change, ISDS is likely to become a key battleground between progressive governments and corporations that are resistant to change. Thankfully, ISDS panels cannot tell sovereign states how or what to regulate. But they can award investors compensation for their losses and even for lost future profits. The stakes are incredibly high. Many ISDS claims now exceed $US1 billion and although the compensation actually awarded is generally much lower than what is sought, the impact on the public purse can be substantial. This year the $US1.77 billion award against Ecuador (brought by Occidental Petroleum) - previously the largest known ISDS award in history - was vastly outstripped with a mind-boggling $US50 billion award against Russia in its high-profile dispute with the oil company Yukos. The huge sums of money involved make it all the more surprising that ISDS is so poorly designed. Originally set-up to deal with disputes between firms, international arbitration is ad-hoc, and panels of three members chosen by the parties to the dispute are set up on a one-off basis. Because they are chosen by the parties to the dispute and paid by the hour, arbitrators lack the independence of court judges. Additionally, individuals may act as an arbitrator in one case and as a legal representative for a claimant in another, which creates serious issues of conflict of interest. Arbitrators are also generally experts in the field of commercial arbitration and may have little knowledge of domestic environmental and health legislation.
Posted on: Sun, 28 Dec 2014 03:00:29 +0000
Trending Topics
Recently Viewed Topics
© 2015