MPs to probe treaties allowing foreign investors to sue governments for billions
The session is focused on the issue of Investor-State Dispute Settlement (ISDS) provisions in the UK’s international investment agreements. Under ISDS, foreign investors have the right to sue states where they have investments and seek compensation for the effects of Government policies. The resulting pay-outs, decided by often secretive international tribunals, can run to billions of pounds.
Meeting details
Civil society groups have criticised ISDS as giving foreign investors significant powers (greater than those enjoyed by domestic investors) to constrain host states’ right to regulate, with potentially anti-democratic impacts on areas including taxation, consumer protection, labour rights, public health and the environment.
Businesses, on the other hand, view ISDS is an essential protection for investors from potentially heavy-handed and unfair Government action, especially where local courts may be biased.
MPs will use the session to seek insight on ISDS from academic lawyers, stakeholders and campaigners. Witnesses’ views could be sought on the likelihood of fossil-fuel interests using ISDS provisions to block action on climate change, the importance of ISDS to investors in making investment decisions, and whether ISDS protects or undermines the rule of law.