Question

To ask the Secretary of State for Business, Innovation and Skills, what representations he has received from his counterpart in (a) South Africa, (b) Ecuador, (c) India and (d) Indonesia on the investor state dispute mechanism in the Trans-Atlantic Trade and Investment Partnership negotiations.

The purpose of an investor-state dispute settlement (ISDS) mechanism in an investment protection agreement is to provide an independent process for foreign investors to seek compensation where they believe they have suffered a loss as a result of action by the host state which breaches the provisions of the treaty. ISDS provisions can help to create a positive investment climate and promote growth. As such, ISDS will not have a direct impact on consumers, who will benefit from other elements of the Transatlantic Trade and Investment Partnership (TTIP) and who have separate routes for seeking redress. The UK currently has over 90 investment protection agreements with other countries. While a number of UK businesses have used ISDS to seek compensation, there has been no successful action against the UK in respect of any of these agreements. The Department for Business, Innovation and Skills has commissioned research into investment protection agreements and the ISDS mechanism, reviewed academic research, consulted external experts and carried out its own internal analysis on investment provisions. The ISDS provisions in TTIP are still under negotiation. We believe these provisions must strike the right balance between protecting investors and the host nation’s right to regulate and determine policy. Balanced investment protection provisions in TTIP could act as a model for future trade and investment agreements.

I am not aware of having received any representations from South Africa, Ecuador, India and Indonesia on investor state dispute settlement in the TTIP negotiations.