Commentary by Bert Foer and Sandeep Vaheesan Questions Impact of Investor State Dispute Settlement Mechanism in Key Trade Talks

AAI Senior Fellow Bert Foer and Special Counsel Sandeep Vaheesan have raised concerns that the ISDS (Investor State Dispute Settlement) provisions now being negotiated in the Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership trade agreements could undermine competition policy. Their commentary provides background on ISDS, which - depending on how it gets spelled out in detail - would allow a foreign investor to seek damages for lost profits in a private arbitration from a host government on broad grounds not available to domestic firms, such as that new domestic laws and policies frustrated its business expectations. The commentary presents examples of how ISDS might threaten competition policy and implicitly urges that appropriate limitations be included in any final agreements.

Read the AAI Commentary.

Read New York Times' Trans-Pacific Partnership Seen as Door for Foreign Suits Against U.S.