Found: ComprehensiveAndProgressiveAgreementForTrans-PacificPartnership#contribution-03A99752-829C-4797-B65B- D50E1D953DA3 11 UK Parliament (2023) ‘Trade

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, with reference to pages 3-5 paragraphs 1-9 of the report by UN Special Rapporteur entitled Paying polluters: the catastrophic consequences of investor-State dispute settlement for climate and environment action and human rights, published on 13 July 2023, if she will make an assessment of the potential merits of not including the investor state dispute settlement in future trade agreements.

Answered by Nusrat Ghani - Minister of State (Minister for Europe)

Investor-State Dispute Settlement (ISDS) is an effective means of resolving investment disputes. The UK has investment agreements containing ISDS with around 90 trading partners. There has not been a successful ISDS claim brought against the UK, nor does ISDS hinder our right to regulate in the public interest, including in areas such as the environment and human rights. This right is recognised in international law.

Where the UK negotiates ISDS, in line with modern international best practice, it ensures the mechanism delivers fair outcomes of disputes, has independent arbitrators bound by high ethical standards, and that proceedings are transparent.

Question to the Department for Business and Trade:

To ask His Majesty's Government how many times the UK has been subject to legal action through investor-state dispute settlement which has been brought either individually or as part of a wider claim; how many times such claims have been successful against the UK; and what was the legal costs of defending those claims.

Answered by Lord Johnson of Lainston - Minister of State (Department for Business and Trade)

The UK has investment agreements with Investor-State Dispute Settlement (ISDS) provisions with around 90 trading partners. There has never been a successful ISDS claim brought against the UK, nor has any claim reached arbitral proceedings for the UK to defend.

Question to the Department for International Trade:

To ask the Secretary of State for International Trade, whether her Department has included the potential implications of the Government's net zero policy in her Department's internal analysis of the cost-benefit of investor state dispute settlements.

Answered by Nigel Huddleston - Financial Secretary (HM Treasury)

Investor State Dispute Settlement (ISDS) does not hinder the Government’s ability to regulate in the public interest, including with regards to the environment. The right to regulate is also recognised in international law.

The UK has around 90 bilateral investment treaties in place with other countries and there has never been a successful ISDS claim brought against the UK, nor has the threat of potential claims affected the Government’s legislative programme.

Question to the Department for International Trade:

To ask the Secretary of State for International Trade, with reference to her oral evidence before the International Trade Committee on 30th November, HC 16 Q454, whether her Department has (a) published or (b) provided information to that Committee on her Departments analysis of investor state dispute settlements.

Answered by Nigel Huddleston - Financial Secretary (HM Treasury)

Inclusion of Investor State Dispute Settlement (ISDS) in UK treaties is considered where it is in the UK's interests and where we agree with partners that it can play a useful role in supporting the bilateral investment relationship. These considerations are negotiation sensitive, and therefore not appropriate for publication.

Investment protections and ISDS can provide reassurance to UK investors to make substantial long term foreign investments. UK investment overseas contributes to economies across the globe, strengthens international trade and security and supports developing countries.

The UK has never had a successful ISDS claim against it.

Question to the Department for International Trade:

To ask the Secretary of State for International Trade, in reference to the answer to Question 454 in the oral evidence given to the International Trade Select Committee on 30 November 2022, if she will publish the analysis her Department has carried out on the long-term benefits of ISDS versus the risk.

Answered by Nigel Huddleston - Financial Secretary (HM Treasury)

Inclusion of Investor State Dispute Settlement (ISDS) in UK treaties is considered where it is in the UK's interests and where we agree with partners that it can play a useful role in supporting the bilateral investment relationship. These considerations are negotiation sensitive, and therefore not appropriate for publication.

Investment protections and ISDS can provide reassurance to UK investors to make substantial long term foreign investments. UK investment overseas contributes to economies across the globe, strengthens international trade and security and supports developing countries.

The UK has never had a successful ISDS claim against it.

Question to the Department for International Trade:

To ask the Secretary of State for International Trade, whether her Department has processes in place to assess the likelihood of there being claims for investor-state dispute settlements being brought against the UK.

Answered by Greg Hands - Minister of State (Department for Business and Trade)

The Department for International Trade is responsible for policy on investment protection and Investor State Dispute Settlement (ISDS), but other government departments are responsible for ensuring that actions they take comply with the UK’s international legal obligations, including with respect to assessing the risk of ISDS claims.

Question to the Department for International Trade:

To ask the Secretary of State for International Trade, what assessment she has made of the environmental impact of investor-state dispute settlement (ISDS) provisions in trade agreements; and whether her Department plans to seek to include ISDS provisions in any UK-India trade agreement.

Answered by Ranil Jayawardena

Where the United Kingdom and her treaty partners agree deals containing investment protections and Investor-State Dispute Settlement, they retain the right to regulate in the public interest, including for environmental purposes. The right to regulate is recognised in international law.

An agreement with India will aim to tackle and reduce the barriers and difficulties faced by British investors. HM Government’s approach to negotiations with India is publicly available at GOV.UK.