TTIP deal moves closer after Europe proposes new 'transparent' court

Final approval of the highly controversial Transatlantic Trade and Investment Partnership (TTIP) free-trade deal between the European Union and the USA has reportedly moved closer after proposals were made for a more transparent appeals process.

The European Commission has proposed a new, more transparent court of appeal instead of the dubious investor court that has caused major objections to be raised on both sides of the Atlantic and threatening negotiations.

Existing proposals included a court system, the investor-state dispute settlement mechanism (ISDS), that effectively would have allowed multinationals to sue governments over decisions that threaten their investments.

European trade Commissioner Cecilia Malmström has now revealed plans for a new system to give investor protection and also be subject to democratic principles and public scrutiny.

The new court would have 15 independent judges, jointly-appointed by the EU and US, with cases heard in Brussels, Washington, or any EU capital, with transparent procedures that ensure all court proceedings are open to the public and related documents posted online.

Commission vice-president Frans Timmermans said the court will also be subject to review by a new appeal tribunal.

“With this new system, we protect the governments' rights to regulate, and ensure that investment disputes will be adjudicated in full accordance with the rule of law."

Objections

There remained major objections, however, that the move was a mere marketing stunt and still meant lawmakers would be deterred from regulating in the public interest.

Shadow rapporteur Yannick Jadot, of the Greens/European Free Alliance group, said the EU trade chief was "trying to force through some form of private court for corporations, instead of responding to the widespread concerns with ISDS and shelving it."

Ska Keller, a Green MEP, was equally dissatisfied, telling reporters that the new court retained "all the hallmarks of the deeply flawed ISDS system", according to the Science Business.

She added: “Cosmetically changing the mechanism but keeping the same prerogatives for corporations is a marketing stunt, which fails to address the core problems of ISDS that have provoked such widespread public concern and opposition. We cannot allow the Commission to simply put lipstick on the ISDS pig."

Campaign group Transport and Environment's Cécile Toubeau told The Parliament Magazine: "the EU cannot hide behind a name change when the flaws of the investment court system remain the same. Citizens will continue to unfairly shoulder private risks taken by foreign investors, while lawmakers will be deterred from regulating in the public interest."

'Nail in the coffin' for ISDS

However, Parliament's rapporteur on TTIP, Benrd Lange, insisted that, "the new proposal from the European Commission is the only way forward in trade policy, and the last nail in the coffin for ISDS."

Likewise, the European People's Party group shadow rapporteur Godelieve Quisthoudt-Rowohl said: "the proposal clearly addresses the worries of EU citizens expressed over the last few months. The new provisions will protect and guarantee member states' right to regulate and provide for a fresh and up-to-date system of investment protection and dispute settlement."