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Thu, 17 Sep, 2015 12:00:46 AM FTimes- Xinhua Report Sept. 17
The European Union (EU) on Wednesday introduced an updated dispute-resolving system for trade talks involving the ongoing Transatlantic Trade and Investment Partnership (TTIP) negotiation between the bloc and the United States.
The new system, dubbed "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 include 15 judges 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 are "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 represented "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", was approved by the Commission.
Next, the Commission said it would present formal documents to the United States after consultation with member states in the Council and discussion with the European Parliament.
The dispute resolution mechanism is the most controversial element of TTIP talks and the old ISDS system has prompted "huge public skepticism" across the continent.
"The old, traditional form of dispute resolution suffers from a fundamental lack of trust," Trade Commissioner Cecilia Malmstrom told a press conference.
"We want to establish a new system built around the elements that make citizens trust domestic or international courts," she said.
According to the EU, the new system will also be applied to other trade and investment agreements.
"In parallel to the TTIP negotiations, the Commission will start work, together with other like-minded countries, on setting up a permanent International Investment Court," it added.
The EU and the United States started their massive TTIP talks in 2013 and have conducted 10 rounds of negotiations. The two sides aim to conclude it by 2016.
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