From the point of view of the Chamber of Labour, these privileges for foreign investors have to be vehemently rejected. A state must have the right to impose regulations, which protect the general public. When foreign companies have the right to sue states for compensation for any loss of profit only because the state reacts to changed economic framework conditions with new environmental, health or social laws, in particular this right (“right to regulate”) would come under serious threat.

The Investor-state dispute settlement would also mean that multinational companies had the opportunity of bypassing national jurisdiction. They would benefit from far more far-reaching indemnification guarantees than national companies. The AK also rejects this unequal treatment.

Together with the ÖGB, the AK has participated in the consultation of the European Commission on the ISDS within the TTIP and informed the Commission of its rejection and concerns.

The consultation basically also serves the purpose to get the opinion of the civil society. However, the present consultation questionnaire is so complicated that it only seems to be suited exclusively to foreign trade experts. This excludes a large part of EU citizens, even more so as the simple but fundamental question “ISDS – yes or no?” is missing. Only after a number of highly complicated mandatory questions, the opportunity is provided to voice ones fundamental rejection. Hence, this raises the question as to how great the interest of the Commission in a widespread participation actually is.

More information:

ISDS Consultation contribution by AK and ÖGB