The European Commission has published the long-awaited results of the public consultation regarding the mechanism for settling disputes between investors and the state (known as ISDS or USID) in the context of the trade negotiations between the EU and the USA (TTIP) [1">. While the majority of the responses entirely reject the special privileges of investors, as part of trade negotiations between the EU and the US, the European Commission says that the focus of the consultation has been on the reforms in the USID planned by the EC and finding the right balance. More than 97% of the citizen responses clearly say “no” to the inclusion of the mechanism in this trade agreement. Nevertheless, the European Commission says in its report that it will continue with its reform program.
Ivaylo Popov from Za Zemiata (For the Earth), who have organized a campaign regarding TTIP and USID, commented: “The European Commission has shown a total disregard for the people’s opinion, the majority has actively disagreed with the suggestion that investors should receive VIP treatment in the negotiations between the EU and the US. This is another proof that the TTIP negotiations are a dangerous Trojan Horse, which is supported by the corporations and going against basic protection of the people and the environment. Next week Za Zemiata will publish a report on Europe’s previous experience with arbitration cases in USID. The analysis shows that so far European governments have been forced to pay more than 3.5 bln euros as compensation to private companies.”
We would like to remind you that the consultation started last spring as an attempt to silence criticism against the USID system. The consultation was based on texts regarding USID in the investment chapter of the recently signed agreement between the EU and Canada [2">. Due to the highly specific nature of the consultation, Friends of the Earth Europe. AK EUROPA, Sum Of Us, 38 Degrees, the Munich Umwelt Institute, and other organizations, including Za Zemiata, prepared online forms available to the public in order to facilitate the citizens’ participation. Together these organizations gathered over 131,000 citizen replies from a total number of 150,000 received by the European Commission. All replies stated clearly “No USID” [3">. Many of these replies discuss in details the main problems of the mechanism for dispute settlement between investors and the state. The problems highlight the following issues: government rights to regulate, arbitrators’ conflicts of interest, lack of transparency of the tribunals, as well as the privileges and undemocratic rights of the investors.
Ivaylo Popov commented: “With this consultation, the European Commission stated that it wanted to ask for the public opinion. The people clearly stood up against excessive privileges for the corporations. Arbitrations between investors and states are undemocratic and violate the fair access to justice. Therefore, they should not be part of the trade agreement between the EU and the US, or any other commercial contracts. Will the European Commission listen to this? Today's multinational corporations have a wide range of measures to protect themselves against investment risks, e.g. private insurance and lawsuits in national courts, i.e there is absolutely no need for any special legal regime such as USID.”
This official statement comes on the background of a growing public opposition to the trade agreement between the EU and the US. The petition against trade deals between the EU and the US, as well as the EU and Canada, has already exceeded one million signatures. The petition, also supported by Za Zemiata, was launched by the coalition Stop TTIP [4"> after an application for the start of an official European citizen initiative was rejected by the European Commission in early September 2014.
Notes:
[1"> http://europa.eu/rapid/press-release_IP-15-3201_en.htm
[2"> USID provides foreign investors with special rights through their inclusion in international trade agreements. The mechanism allows corporations to sue governments in secret private tribunals, when new laws stand in the way of their expected profits. USID clauses in already signed agreements have allowed corporations to challenge measures that are in the public interest, e.g. fracking moratoriums, prohibition of use of toxic chemicals, and recently, Germany's democratic decision to phase-out nuclear power.
More information about USID / ISDS and the problems related to it can be found here: http://zazemiata.org/v1/ISDS.496.0.html
Next week “Za Zemiata” will publish the report “Hidden costs of EU trade agreements” in Bulgarian. The report presents analysis of Europe’s previous experience with arbitration cases in USID. The analysis shows that so far European governments have been forced to pay more than 3.5 bln euros as compensation to private companies.
You can find the report in English here: http://www.foeeurope.org/how-taxpayers-footing-bill-europes-trade-deals-041214
[3"> http://www.no2isds.eu/
[4"> https://stop-ttip.org/
Press Release by “Za Zemiata” regarding the publication of the position of the European Commission on the results of the public consultation discussing the special arbitration in the trade agreement between the EU and the US, known as TTIP (Transatlantic
