Brussels, 04/02/2016 (Agence Europe) - In an opinion published on Tuesday 2 February, the biggest German association of judges and public prosecutors, Deutscher Richterbund, has publicly criticised the proposals of the European Commission to reform the investor-state dispute settlement (ISDS) mechanism and to create a special investment court as part of the transatlantic trade and investment partnership agreement (TTIP) between the EU and US.
In its opinion (available at: http://goo.gl/8GSPC3 ), Deutscher Richterbund challenges the legal basis of such a system, as well as the need for it to be introduced in the first place. According to Deutscher Richterbund members, the Commission's proposal is more like a permanent arbitration tribunal.
Like many civil society organisations, Friends of the Earth Europe reaffirmed its opposition to the Commission's proposals on Wednesday 3 February, saying that the Commission fails to make a fundamental reform of the “flawed system” of investment protection, in particular the granting of exclusive privileges to foreign investors over the rest of society. It also says that the Commission does not take account of the fact that a chapter on protecting investors' rights is not necessary in TTIP.
Deutscher Richterbund's opinion “confirms the verdict of civil society that the investment court system is deeply flawed, undemocratic and unacceptable. It also raises serious questions about the legality of the investor-state dispute settlement (ISDS) in the first place, which the European Court of Justice should investigate in relation to upcoming trade deals, such as the EU-Canada CETA”, Friends of the Earth Europe stated. “The movement throughout Europe against toxic trade deals that promote corporate privileges at the expense of the public interest is growing by the day; it is unstoppable. It is time for the European Commission to take stock and get rid of investors' rights once and for all”, the NGO adds.
At the end of a consultation process started in spring 2014, the Commission unveiled a proposal, in September 2015, aimed at creating a special court of justice for settling investment-related disputes in TTIP, and replacing the current ISDS mechanism in any future negotiations on investment between the EU and a third country or regional block (see EUROPE 11390).
The Commission formally sent this finalised proposal to the US party in November 2015. The proposal includes an arrangement aimed at guaranteeing the right to settle, the creation of a special court for investment and an appeals court based on clearly defined rules, with qualified judges and transparent procedures (see EUROPE 11429).
On 2 February, European Commissioner for Trade Cecilia Malmström announced that an initial exchange of views between EU and US negotiators on the EU proposals is due to take place at the 12th round of TTIP negotiations in Brussels during the week of 22 February (see EUROPE 11482). (Original version in French by Emmanuel Hagry)