Labour MEPs today called on the European Commission to come up with alternatives to inclusion of Investor-State Dispute Settlement (ISDS) in the Transatlantic Trade and Investment Partnership (TTIP), following its response to a Europe-wide public consultation.
Though the Commission did acknowledge major concerns regarding its proposals for ISDS in the framework of TTIP, the EU-US free trade deal currently being negotiated, it did not propose an alternative mechanism to address the shortfalls it identified.
Jude Kirton-Darling MEP, Labour's European spokesperson on TTIP, said:
"The Commission is telling us ISDS is mortally wounded, and yet they are still agonising over the size of the plaster. Considering the scale of public concern, we rightly expected more from them.
"How can you call a quasi-judicial process that suffers from a flawed procedure, offers no possibility to appeal and limits the policy space of national governments, justified? That's the Commission's conclusion on ISDS today, and it will not address the considerable concerns raised by the thousands of constituents I have been listening to since I took office".
Labour MEPs also expressed reservations on the Commission's intent to offer solutions in a timely fashion.
Jude Kirton-Darling MEP added:
"The Commission has announced its plan to reform the EU's ISDS model. However, without any commitment on a timetable or policy process, this announcement is simply not credible at all. Again, this is not the way we expect the new Commission to go about its business - this is not a Commission listening to the European public."
David Martin MEP, Socialist and Democrat Group spokesperson on international trade, said:
"The Commission has been clearly presented with citizens' concerns but it is still very slow to react. It launched a civil society consultation process on ISDS to which more than 150,000 stakeholders replied. Commissioner Malmström has rightly identified the problems of ISDS, but not yet provided adequate solutions.
"Labour MEPs are open to looking at real improvements, but so far the potential dangers outweigh the benefits of ISDS. If the Commission is not serious about a thorough reform, it would be best to withdraw ISDS altogether."
ENDS
For further information, please contact Shamik Das on 0044 7920 441362 or 0032 479 790053.
www.eurolabour.org.uk • @EuroLabour
Notes to Editors
1. The European Commission today adopted its response to the public consultation conducted over the summer on the inclusion of an Investor-State Dispute Settlement (ISDS) in the Transatlantic Trade and Investment Partnership (TTIP).
2. ISDS is an arbitration mechanism that allows foreign investors to claim for compensation from governments in cases of expropriation or unfair treatment. With 150,000 responses, the consultation has generated significant public interest and demonstrated the scale of public concern about ISDS.
3. There has been a recent surge in cases launched by multinational corporations against sovereign states using ISDS clauses in a number of trade deals, some of which were clearly aimed at limiting the ability of governments across the world to implement important legislation such as on labour rights (eg. Veolia vs. Egypt) or public health (Philip Morris Asia vs. Australia). This has led to an unprecedented mobilisation of trade unions, civil society and citizens across Europe to oppose the inclusion of such a mechanism in TTIP.
