TTIP - Malmström tries to convince MEPs on ISDS
Brussels, 11 May 2015 - MEPs have threatened to block TTIP if ISDS is included, despite revised plans presented by European Trade Commissioner Cecilia Malmström on 7 May.
Investor-state dispute settlement (ISDS) is an instrument that grants an investor the right to use dispute settlement proceedings against a foreign government. ISDS has been a hugely controversial subject throughout the transatlantic trade and investment partnership (TTIP) talks and has been met with fierce opposition from national governments, MEPs and civil society. With an ISDS system in place, corporations would be able to challenge governments in a private trade tribunal.
Malmström told MEPs that the new ISDS plans were intended "to remove any ambiguity about sovereign governments' right to regulate".
Yet despite the commissioner's best efforts to garner MEPs' support for ISDS, most groups remain wary of such a mechanism.
The Commission had previously expressed its hope to finalise TTIP by the end of the year, but this deadline seems unlikely.