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Tuesday, October 25, 2016

Insurance an alternative to “investor-state dispute settlement”, or ISDS

Insurance an alternative to "investor-state dispute settlement", or ISDS

So what clauses counter ISDS clauses in a trade agreement? Steve

...Foreign investors can protect themselves against egregious governmental abuse by purchasing political-risk insurance, points out Terra Lawson-Remer, an economist at the Brookings Institution.

...Other countries are beginning to follow Brazil's lead: South Africa says it will withdraw from treaties with ISDS clauses and India is considering doing the same. Indonesia plans to let such treaties lapse when they come up for renewal. Australia briefly forswore ISDS in the wake of a complaint by Philip Morris about its requirements for health warnings on cigarette packets.

...Jeffrey Schott of the Peterson Institute, a think-tank, reckons that America's insistence on an arbitration clause in its deal with the EU does not stem from any concern about the strength of property rights in Europe. Rather, it is a marker for future negotiations for a bilateral trade deal with China. "America wants to set a precedent for China by creating a world-class template for trade agreements," he says.