Brussels proposes new plan for trade disputes

Proposals for an alternative court system to judge disputes between investors and governments under the terms of the planned EU-US trade agreement have been unveiled by European Trade Commissioner Cecilia Malmstrom.

It would replace the existing Investor State Dispute Settlement system, which has been temporarily suspended from the ongoing negotiations but which the US is adamant is required in the final Transatlantic Trade and Investment Partnership agreement.

Many of the new provisions attempt to address key public concerns such as that investors’ interests would trump governments’ right to legislate on public issues such as the environment if it interfered with investor profits.