Meeting of the Committee on International Trade on the Investment protection in TTIP (ISDS), in the EP in Brussels. Exchange of views with Cecilia MALMSTR&Ouml;M, Member of the EC in charge of Trade

Brussels

exchange of views

meeting

Committee on International Trade

MALMSTRÖM, Cecilia (ALDE, SE, EC)

Transatlantic Trade and Investment Partnership (T)

Investment protection in TTIP (ISDS): extracts from the exchange of views with Cecilia MALMSTRÖM, Member of the EC in charge of Trade at the Committee on International Trade

Interior, Atmosphere shots before the exchange of view starts, (2 shots)

SOUNDBITE (English), Cecilia MALMSTR&#214;M, Member of the EC in charge of Trade at the Committee on International Trade , "We believe that the proposal has merit, the European procurement markets are still much more open than the rest of the world and an instrument would create more incentives to follow our lead. So we are now working to amend the proposal and I hope that we can propose that to you very soon and from that have a good discussion on how to move forward."

SOUNDBITE (English), Cecilia MALMSTR&#214;M, Member of the EC in charge of Trade at the Committee on International Trade , "It sets out the context of a new approach, the value of investment protection and the existing 1400 European agreements that already exists. The real need for a deep reform recognising the flaws the current system and also the very important progress that we have made in our agreement with Canada and Singapore."

SOUNDBITE (English), Cecilia MALMSTR&#214;M, Member of the EC in charge of Trade at the Committee on International Trade , "First we proposed to remove any ambiguity about Sovereign government's rights and putting that black and white very clearly. In the past agreements having drafting more with the protection of investment in mind then the right of governments to regulate, to protect their citizens and it will no longer be the case. 2nd we address fears that in an healthy link between arbitrators and the parties to dispute, this improved system would move away from individual ad hoc cases to become much more like traditional Courts and it sets out clearly that our goal is a permanent international Investment Court."

SOUNDBITE (English), Cecilia MALMSTR&#214;M, Member of the EC in charge of Trade at the Committee on International Trade , "We proposed to plug a significant hole into today's ISDS system that is a lack of an appeal mechanism. The goal is a multilateral appeal mechanism as part of a permanent Court, that will take some time as I said, but again we will not wait to act. Instead starting with TTIP we proposed to put a bi-lateral appeal process in all our agreement. And finally we address the relationship with domestic Courts to get rid of the possibility that company can get compensation twice and avoid the risks of parallel claims."

SOUNDBITE (English), Cecilia MALMSTR&#214;M, Member of the EC in charge of Trade at the Committee on International Trade, "The only idea that we do not agree with is the notion that we should take investment arbitration out of TTIP altogether. It doesn't make sense for 3 reasons, first of all, U.S. is a functioning democracy based on the rule of law, but that does not mean that there is no risk for investors. U.S. Courts are not obliged to follow commitments that U.S. takes internationally. And the U.S. does not always respect the international commitments; the U.S. has the most WTO cases against it or any WTO member."

SOUNDBITE (English), Cecilia MALMSTR&#214;M, Member of the EC in charge of Trade at the Committee on International Trade , "We all agree there is a problem, so let's start to deal with it in TTIP, but as I said for all future Free Trade Agreements."