Civil society from Myanmar and the European Union are calling for the suspension of negotiations for an investment protection agreement between the EU and Myanmar until the European Court of Justice has ruled on the compatibility of the controversial Investment Court System (ICS) dispute settlement mechanism, with the EU Treaties.
How fair is the investment arbitration system in Latin American and Caribbean (LAC) countries? Are investor-state disputes balanced between national and corporate interests? LAC countries are among the most affected by the investment arbitration system, representing 28.6% of all known investor-state disputes around the world. In particular, Argentina, Venezuela, Mexico, Ecuador, Bolivia and Peru account for 77.3% of the total number of claims against LAC countries. Analysis shows that the system so far heavily favours corporate interests. Investors have won in 70% of the cases brought against LAC countries. As a result, LAC States have already had to pay foreign companies 20.6 billion USD, which could cover Bolivia’s budget for health and education for four whole years.
A push by 39 WTO members, including China, Russia, the EU, Argentina, Brazil and Mexico to reintroduce formal discussions on investment facilitation at the 11th World Trade Organization (WTO) Ministerial conference has failed.
This week, representatives of around 100 countries are meeting in New York to talk about investor-state dispute settlement (ISDS). ISDS is a legal instrument that multinationals can use to sue governments for billions. External experts and observers fear that the new negotiations will amount to ‘old wine in new bottles’. They believe that those who benefit from this instrument (powerful states and top lawyers from the ISDS sector) are controlling the debate.
This statement has been developed jointly by Indonesian and European civil society organisations, who believe that an EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA) must first of all be approached as a means to serve the public interest.
Cecilia Olivet, Jaybee Garganera, Farah Sevilla, Joseph Purugganan
24 May 2016
Mining firms have been one of the main corporate sectors worldwide to take advantage of investor-state dispute mechanisms to sue states for regulation of mining, having sued governments for a total of USD 53 billion so far. The Philippines, one of five countries worldwide with the highest overall mineral reserves, has a web of investment treaties which severely constrain the government's ability to regulate or close polluting mines. This legal straitjacket will become even tighter if the EU–Philippines Free Trade Agreement and the Regional Comprehensive Economic Partnership (RCEP) proceed.
By the end of August 2019, African States had been hit by a total of 106 known investment treaty arbitration claims. This represents 11% of all known investor-state disputes worldwide. Between 2013 and 2018, there has been an unprecedented boom of claims against African governments. During these last six years, they received more investor claims than the previous 20 years combined. This paper exposes how the international investment regime affects African countries.
What drives the negotiations for an Indonesia-Europe Comprehensive Economic Partnership Agreement (CEPA) in relation to investment? What would be the merits of the alternative investment protection frameworks as proposed by Indonesia? Will it be more effective in promoting a more equitable and sustainable development?
Lora Verheecke, Pia Eberhardt, Cecilia Olivet, Sam Cossar-Gilbert
24 June 2019
Multi-billion dollar lawsuits bleeding cash-strapped nations, corporations reversing victories by environmental defenders and dazzling financial rewards for investors who perpetrated human rights abuses. Ten investor-state lawsuits which have been filed, threatened or decided since 2015, from all over the globe (in Europe, Africa, Asia and Latin America), demonstrate that ISDS is again and again used as a corporate weapon against the public interest. This report exposes the true nature of the ISDS regime through 10 recent stories.
The EU and Mexico launch negotiations for a ‘modernised’ Free Trade Agreement. A key feature is the investment protection chapter which grants major multinational companies in Mexico and the EU the exclusive right to challenge democratic decisions taken by States, even when they were taken in the public interest. The report outlines six reasons of major concern.
In the volatile and fragile context of Myanmar's nascent democratic reform, investment protection treaties must not be allowed to negatively affect processes that would make Myanmar more peaceful and democratic.
Important decisions on the European-Canadian free trade agreement CETA will shortly be taken on EU institutional and Member State level. On this occasion, Canadian and European experts of civil society shed light on the most controversial aspects of the agreement. They conclude that CETA in its present form threathens public welfare on both sides of the Atlantic, referring among other areas to investor-state dispute settlement, agriculture and energy policy.