EU Finalises Proposal for Investment Protection and Court System for TTIP

The EU has formally presented to the US its proposal for a reformed approach on investment protection and a new and more transparent system for resolving disputes between investors and states: the Investment Court System.

The European Commission has finalised its new and reformed approach on investment protection and investment dispute resolution for the Transatlantic Trade and Investment Partnership (TTIP). This follows another round of extensive consultations with the Council and the European Parliament. The proposal for the Investment Court System has been formally transmitted to the United States and has been made public.

The final text includes all the key elements of the Commission's proposal of 16 September, which aims at safeguarding the right to regulate and create a court-like system with an appeal mechanism based on clearly defined rules, with qualified judges and transparent proceedings. The proposal also includes additional improvements on access to the new system by small and medium sized companies.

The new system would replace the existing investor-to-state dispute settlement (ISDS) mechanism in TTIP and in all ongoing and future EU trade and investment negotiations.

“Today marks the end of a long internal process in the EU to develop a modern approach on investment protection and dispute resolution for TTIP and beyond,” said Trade Commissioner Cecilia Malmström. “This is the result of far-reaching consultations and debates with Member States, the European Parliament, stakeholders and citizens. This approach will allow the EU to take a global role on the path of reform, to create an international court based on public trust.”

Since the publication of the Commission's initial proposal, the text was circulated extensively for consultation to ensure broad endorsement of its main innovative elements, notably amongst co-legislators: EU Member States and the European Parliament.

These elements refer in particular to the strengthening of the right to regulate through a new article, the establishment of a new system for resolving disputes – ‘the Investment Court System’ –, and the creation of an appeal mechanism to correct errors and ensure consistency.

One of the changes made to the 16 September proposal is an additional improvement for small and medium-sized enterprises that would benefit from faster proceedings and would enjoy privileged treatment in comparison with large multinational companies.

Share this page:

In this section

Clinical Research Global Compliance Just Got Easier

Schulman Associates IRB and Falcon Consulting Group have announced a new Joint Venture, Provision Research Compliance Services.

READ MORE →

Crossroads Systems Regains NASDAQ Compliance

Crossroads Systems has announced that it has received notice from The NASDAQ Stock Market that it had regained compliance with Listing Rule 5550(b)(1).

READ MORE →

Reducing Red Tape in Business Would Boost Greek Productivity – OECD

Greece could save its businesses hundreds of millions of euros a year and improve their competitiveness by reducing administrative burdens, according to a new Organisation for Economic Co-operation and Development (OECD) report.

READ MORE →

Financial Services Industry “Out of Step With FCA Phone Regulations”

UK Financial Services companies are still struggling to comply with The Financial Conduct Authority regulations which require them to record mobile phone conversations, a new report from analyst firm Ovum has found.

READ MORE →

FCA to Give Firms Regulatory Help

Innovative firms, particularly smaller start-ups, will be offered the chance to work with the Financial Conduct Authority (FCA) whilst they develop new technologies and approaches to ensure they are compliant with regulations from the moment they go live, says FCA chief-executive Martin Wheatley.

READ MORE →

CSI and YBS Fined for Unclear Promotions

The Financial Conduct Authority has fined Credit Suisse and Yorkshire Building Society a total of £3.8m for the “misleading” promotion of a structured product to thousands of risk-averse investors.

READ MORE →

News Stand

View more → Sign up to receive new issues →