The City Law School’s Professor of International Economic Law provides insights into the UK’s plans to use Investor-State Dispute Settlement (ISDS) in its future Free Trade Agreements (FTA).
Professor of International Economic Law, Professor David Collins, gave oral evidence to the House of Commons’ International Trade Committee on January 18th 2023.
In response to the Committee’s discussion of UK trade negotiations, Professor Collins provided insight into the UK’s plans to use Investor-State Dispute Settlement (ISDS) in its future Free Trade Agreements (FTA), including the highly-anticipated Comprehensive Progressive Trans Pacific Partnership (CPTPP) with 11 Pacific Rim economies.
Professor Collins says ISDS is a “controversial legal procedure in which foreign investors can bring legal claims directly against governments of the countries that host them in international arbitration tribunals for interference with their investments, such as an expropriation.”
He is of the view that “many modern FTAs are eliminating or restricting ISDS, particularly where partner countries have strong domestic courts to hear claims.”
Professor Collins explained to the Committee that ongoing reforms to ISDS have made it fairer than in the past. He also noted that the system enables countries to bring counterclaims against foreign investors in some circumstances.
The International Trade Committee is appointed by the House of Commons to examine the expenditure, administration and policy of the Department for International Trade and its associated public bodies.
To watch the whole Parliamentary Committee session please visit this weblink.