Vrijschrift letter highlights dangers ISDS in CETA and EUSFTA

A Vrijschrift letter to the Dutch Parliament highlights the dangers of investor-to-state dispute settlement (ISDS) in the trade agreements with Canada (CETA) and Singapore (EUSFTA). On 25 March EU trade ministers will meet (informally) to discuss trade agreements and ISDS. In preparation, the Dutch Parliament trade and development committee meets on 11 March. Today Vrijschrift has sent this committee a letter. Original in Dutch, translation:

Dear members of the BuHaOs committee,

On March 11 you will discuss trade agreements.

White House defends ISDS

The United States government defends its investor-to-state dispute settlement (ISDS) model. It gives the US unfair procedural advantages. Rigged

The International Centre for Settlement of Investment Disputes (ICSID) is part of the World Bank. It is the most used ISDS forum; investors can choose this forum. The president of the World Bank has always been the candidate of the US.

Unified Patent Court a mistake of historic dimensions?

The EU wants to create a Unified Patent Court (UPC). I will discuss some aspects of the UPC and make two more general remarks on (adjudicative) system design. The UPC proposal has a twist; it tries to minimise the role of the EU Court of Justice (CJEU). This may lead to an expansionist interpretation of patent law. According to Josef Drexl, director of the Max Planck Institute for Innovation and Competition, this could easily amount to a mistake of historic dimensions:

“The policy argument behind this is to concentrate patent law cases before highly specialized patent courts and to prevent, as far as possible, any general law court from controlling the specialized court.

EU Parliament EPP group in favour of ISDS

The European People’s Party (EPP), the biggest group in the European Parliament, is in favour of investor-to-state dispute settlement (ISDS). I will discuss their position and conclude it creates three risks. First, it risks subjecting the EU to a corrupt adjudicative system. Second, it risks undermining the EU court’s exclusive jurisdiction over the definitive interpretation of EU law. Third, it risks crashing upcoming EU trade agreements.

Seven things you should know about EU-Singapore ISDS

In October 2014 the European Commission published the draft text of the EU-Singapore trade agreement (EUSFTA) investment chapter. It contains investment protection rules for foreign investors and the controversial investor-state dispute settlement (ISDS), which gives foreign investors special rights in conflicts with governments. Seven things you should know about this investment chapter:

1. The agreement creates a lock-in. Unlike most investment agreements ratified by European countries, it is not a stand-alone investment treaty, from which parties can withdraw.

EU liberals seem ready to sacrifice our democracy

Marietje Schaake, the European Parliament’s liberal group’s (ALDE) spokesperson on the trade agreement with the US (TTIP) published a blog on investor-state arbitration (ISDS). I will discuss her arguments below; to avoid cherry picking, I will quote her whole blog (for the links and images see her blog). I conclude that a majority of the European Parliament liberal group seems ready to sacrifice the separation of powers, and democracy, for no good reason. As things stand now, the liberals won’t fight for our democracy. Schaake:

“ISDS – what’s going on?

FFII submission to Ombudsman consultation on openness in TTIP negotiations

Foundation for a Free information Infrastructure (FFII) submission to the European Ombudsman public consultation in relation to the transparency of the Transatlantic Trade and Investment Partnership (TTIP) negotiations. The submission has a focus on the EU’s human rights obligations. The international human rights obligations (ICCPR and ICESCR) may be relevant for other countries as well, such as TPP countries. FFII submission: pdf, html

Who leaked about Juncker and Malmström fighting over ISDS?

Last week the Dutch newspaper NRC revealed a fight between Juncker and Malmström over ISDS. The article (paywall) sketched the context: uninformed activists gaining influence. The article suggested Juncker without good reason giving in. As Juncker does not gain anything with this leak about the fight, I assume proponents of ISDS leaked, and had the ear of the reporter, so they could sketch the context. The newspaper did not give civil society a rebuttal: very bad journalism, endangering our democracy.

EU Parliament promises to better register its decisions

In 2011 the FFII discovered that some European Parliament decisions regarding the ratification of the Anti-Counterfeiting Trade Agreement (ACTA) were not recorded in any known document. A hidden class of documents (“coordinators’ minutes”) seemed to exist, but the Parliament denied the existence. The FFII filed a complaint with the European Ombudsman. The ombudsman found a systemic failure regarding the listing of documents in the Parliament’s registry of documents. In response, the Parliament took measures to better comply with EU law.

11 October action day against TTIP, CETA and TISA

This Saturday 11 October 2014, in hundreds of European cities, civil society organisations, unions and farmers will organise manifestations against EU trade agreements under negotiation. The manifestations regard the Trade and Investment Partnership (TTIP) with the US, the Comprehensive Economic and Trade Agreement (CETA) with Canada, and the Trade in Services Agreement (TISA) with many countries. The secret negotiations create serious risks for privacy, reform of copyright and patent law, labor rights and the environment, and may give companies excessive power in conflicts with states. See also the Statement of Concern on investor-to-state arbitration by over 110 scholars.