Call to rethink disputes system

A pan-European consumer rights body has voiced its opposition to the controversial investor dispute mechanism touted as part of a transatlantic trade deal.

The opposition comes despite moves last week to significantly alter the so-called investor state dispute settlement system (ISDS).

The European Consumer Organisation (BEUC) said a decision by the European Parliament to replace ISDS with a new dispute resolution mechanism as part of the proposed Transatlantic Trade and Investment Partnership (TTIP) is welcome, but does not go far enough.

It says it should be interpreted as “a clear signal from the [European] Parliament to the [EU] Commission not to support ISDS or a reformed ISDS whatsoever”.

The decision taken by parliament members signals the end of the road for ISDS which is beyond repair, according to BEUC spokeswoman Elisavet Sergiadou.

“It’s discriminatory over national investors,” she said. “We don’t see why foreign investors should have more rights than national investors or consumers... We think there are better ways to resolve the problems between foreign investors and countries.

“We want to see it excluded from TTIP… basically, the fact that you can undermine public interest policies and companies have the right to sue over public interest policy is something that we don’t accept or understand why it should be part of a trade deal.”

Advocates of the ISDS mechanism, including Enterprise Minister Richard Bruton, have insisted that governments would retain the “absolute right to regulate”, as Mr Bruton put it last month, while European president Martin Schulz said the new system he called for would ensure “private interests cannot undermine public policy objectives”.

Mr Bruton also indicated ISDS was necessary partly to deal with legislative differences across different US states and EU countries which can cause difficulty for investors.

BEUC, however, dismissed these concerns, countering that they feel both countries have sound legal systems which afford investors strong enough protection. An opportunity exists for negotiators to strike a deal that delivers for consumers, Ms Sergiadou added.

Sinn Féin and protest group Uplift are among the opponents to TTIP with ISDS a particular bone of contention. All four current Fine Gael MEPs support TTIP.