European Parliament supports TTIP, but rejects current ISDS model

On July 8, 2015, the European Parliament adopted a non-binding resolution guiding the European Commission on the negotiations of the Transatlantic Trade and Investment Partnership (TTIP) with the United States. The resolution generally supports TTIP—but rejects its investor–state dispute settlement (ISDS) provision.

The Parliament asked the Commission to replace the provision with a new system that is “subject to democratic principles and scrutiny” and conducted “in a transparent manner by publicly appointed, independent professional judges in public hearings.” It also called for an appellate mechanism, consistency of decisions, respect for the jurisdiction of EU and member state courts, and prevalence of public policy objectives over private interests.

For EU Trade Commissioner Cecilia Malmström, the resolution signalled that “the old system of [ISDS] should not and cannot be reproduced in TTIP.” She committed to flesh out the reform ideas she presented in May and to incorporate them into the TTIP.