Dáil Éireann Debate, Tuesday - 11 November 2014
240. Deputy Pearse Doherty asked the Minister for Jobs, Enterprise and Innovation if he has signed a letter supporting the investor-state dispute settlement mechanism, ISDS, proposed by the transatlantic trade and investment partnership; his reasons for doing so; his views on the ISDS mechanism and its implications for Ireland; and if he will make a statement on the matter. [43082/14]
View answerThe scope of the EU Commission’s mandate to negotiate with the United States on a Transatlantic Trade and Investment Partnership (TTIP) includes investment protection and investor state dispute settlement (ISDS). The mandate is available on the EU Council’s website at
http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/EN/foraff/145014.pdf.
I believe that ISDS is a valid mechanism. But I also believe that the experience of ISDS internationally shows us there is room for much improvement in how the system works. And that, I believe, is the reason why ISDS has raised some concerns.
The TTIP gives us a valuable opportunity to make improvements and create a new generation ISDS model that would respect and address legitimate concerns that have been raised. Such improvements include having safeguards against claims that are clearly unwarranted and making sure that ISDS does not serve to constrain the rights of governments to take measures for legitimate public policy reasons. Important features in any system would also include greater transparency in the operation of tribunals and ensuring the independence of arbitrators.
The EU Commission is currently analysing the results of a public consultation on ISDS, carried out in response to concerns raised. Ireland was one of a number of EU member states that wrote to the new EU Commissioner for Trade, Cecilia Malmström, expressing the view that the consultation was an important step in ensuring that we strike the correct balance to ensure that governments retain their full freedom to regulate. We also pointed out that it would be important that the outcome of this consultation would run its course and that the views expressed by our stakeholders would be carefully considered before reaching firm decisions on the way forward.
It is important to underline that the EU and the US follow the same principles that guide investment and seek to ensure a level playing field for investors. These principles recognise the right of Governments to regulate for legitimate public policy objectives. I will be seeking to ensure that we learn from the experience of the past and that any ISDS provisions in a future Agreement would represent a fair and reasonable option to which investors would have recourse for legitimate reasons.
