EU Trade Commissioner Cecilia Malmström reviewed the status of ongoing discussions under the auspices of the United Nations to reform the Investor-State Dispute Settlement system (ISDS), during an event on investment protection reform, which took place in Brussels on Thursday 22 November. On this occasion, she confirmed that the project, initiated by the European Union and Canada (see EUROPE 11687), had been relayed by more than 90 countries.
"Three weeks ago in Vienna there was consensus that reform should happen. This is an important achievement which seemed impossible even two years ago," Malmström said with satisfaction. “States all over the world have identified problems with the current system, and identified where reform is desirable. These problems are a lack of consistency and correctness, the role of arbitrators, the costs and duration. The next step is to find solutions," she added.
The EU-Canada project is to replace the ad hoc dispute settlement system with a Multilateral Investment Court - or 'MIC'.
"We are convinced that only a permanent body can truly respond to the identified concerns, but this is not for one state - or group of states - to decide,” commented the Commissioner.
In addition to a permanent court, the Union supports, inter alia, the appointment of judges and their permanent remuneration in order to guarantee that they remain impartial and independent. Any procedure should be conducted in a transparent manner and the possibility of appealing a decision should be provided for (see EUROPE 11985).
"The discussions in Belgium about the EU-Canada trade agreement CETA in 2016 were an important sign that the boundaries of the discussions have changed,” added Belgian Foreign Minister Didier Reynders.
“As a result of the discussions about CETA (the EU-Canada Free Trade Agreement), Belgium has submitted a request for an opinion to the European Court of Justice to further clarify the legal framework in which the Investment Court System, as a first step to a fully multilateral approach, will be established (see EUROPE 11856)," he recalled. The Advocate General, Yves Bot, is expected to render an opinion on 29 January 2019.
Mr Reynders also announced that Belgium and Luxembourg were in the process of finalizing a new model text for bilateral investment treaties, including a sunset clause to replace the ISDS with a multilateral jurisdiction as soon as it becomes operational. (Original version in French by Hermine Donceel)