EU to update dispute-resolving system for TTIP, other trade talks

The European Union (EU) on Wednesday introduced an updated dispute-resolving system for trade talks including the ongoing Transatlantic Trade and Investment Partnership (TTIP) negotiation between the bloc and the United States.

The new system, dubbed as "the Investment Court System", will replace the existing investor-to-state dispute settlement (ISDS) mechanism, the EU's executive arm the European Commission said in a press release.

Under the new system, a First Instance Tribunal and an Appeal Tribunal would be set up.

For the TTIP, the Tribunal of First Instance will have 15 judges to be appointed jointly by the EU and the United States.

Among them are five EU nationals, five U.S. nationals and five nationals of third countries.

The Appeal Tribunal, following the same rules, will have six members appointed by both sides: two Europeans, two Americans and two from third countries.

Other reforms of the new system include to further guarantee governments' right to regulate and enhance transparency.

There lies "fundamental" changes compared with the old ISDS system which operated on an ad-hoc basis with arbitrators chosen by disputing parties, the Commission said, adding the changes represent "a new era" in the settlement of investment disputes.

The new system, which "builds on the substantial input received from the European Parliament, member states, national parliaments and stakeholders through the public consultation held on ISDS", has been approved by the Commission. Endit