Asked by: Baroness Miller of Chilthorne Domer (Liberal Democrat - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the effect of investor state dispute settlements on a country's ability to invest in its Sustainable Development Goals.
Answered by Baroness Gustafsson
The UK is party to 81 Bilateral Investment Treaties and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership that contain Investor-State Dispute Settlement (ISDS).
ISDS provides an independent means to resolve disputes with states where investors believe they have experienced arbitrary, discriminatory or unfair treatment or expropriation without compensation. ISDS does not remove governments’ right to regulate in the public interest, including with respect to implementation of the Sustainable Development Goals.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, if he will take steps to prevent companies from changing commissions to franchisees at short notice.
Answered by Justin Madders
The franchising industry self-regulates through the British Franchise Association (BFA) and its Code of Ethics, and the Quality Franchise Association, which offers a Code of Conduct. Franchise agreements are the primary instrument that govern the relationship between franchisors and franchisees and those should normally include details such as fees, territory rights, contract duration and dispute resolution mechanisms. Disputes are, therefore, a private matter in which it would be inappropriate for Government to intervene.
Asked by: Stephen Gethins (Scottish National Party - Arbroath and Broughty Ferry)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, if he will make an assessment of the potential impact of the UK's commitments under investor-state dispute settlement mechanisms on (a) environmental and (b) human rights protections in partner countries.
Answered by Douglas Alexander - Secretary of State for Scotland
The UK is party to 83 Bilateral Investment Treaties and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership that contain Investor-State Dispute Settlement (ISDS).
ISDS provides an independent means to resolve disputes with states where investors believe they have experienced arbitrary, discriminatory or unfair treatment or expropriation without compensation. ISDS does not remove governments’ right to regulate in the public interest, including with respect to the environment and human rights.
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, pursuant to the Answer of 11 March 2024 to Question 16834 on Trade Agreements: Dispute Resolution, whether she has made an assessment of the potential implications for her policies of the findings of the UN Special Rapporteur's report entitled Paying polluters: the catastrophic consequences of investor-State dispute settlement for climate action and human rights relating to the transparency of investor-State dispute settlements.
Answered by Alan Mak
I refer the Hon. Member to the response provided to Question 16553 on 11 March.
Asked by: Wendy Chamberlain (Liberal Democrat - North East Fife)
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
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.
Asked by: Lord McNicol of West Kilbride (Labour - Life peer)
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
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.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
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 - Shadow Secretary of State for Culture, Media and Sport
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.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
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 - Shadow Secretary of State for Culture, Media and Sport
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.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
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 - Shadow Secretary of State for Culture, Media and Sport
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.
Asked by: Ruth Cadbury (Labour - Brentford and Isleworth)
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
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.