EU proposes new system to replace ISDS in TTIP

The European Commission on Thursday proposed a new and more "transparent system" to replace the existing investor-to-state dispute settlement (ISDS) mechanism in the Transatlantic Trade and Investment Partnership (TTIP).

According to an EU official statement, the EU has formally transmitted its proposal, called the Investment Court System, to the United States.

In addition to replacing ISDS mechanism in TTIP, the new system will be used in all ongoing and future EU trade and investment negotiations.

The final text of the proposal includes all the key elements of the Commission's previous proposal, which aims at safeguarding the right to regulate and create a court-like system with an appeal mechanism based on clearly defined rules, with qualified judges and transparent proceedings.

The proposal also includes additional improvements on access to the new system by small and medium sized companies.

Negotiations in this area have been on hold since March 2014, when the European Commission launched a public consultation on ISDS in the TTIP.

The EU will now resume negotiations with the U.S. on the subject of investment protection and resolution of investment disputes, and the Investment Court System. Endit