BIAC Highlights the Importance of Effective Investor-State Dispute Settlement

In order to stimulate inward investment, investors must be treated fairly and protected against the arbitrary behavior of host states. Open, transparent and non-discriminatory investment policies and agreements are a must. In this context, Investor-State Dispute Settlement (ISDS) is an indispensable part of a fair, efficient investment protection system. It provides for a neutral and high-quality legal dispute resolution mechanism in cases of investment treaty breaches by host states.

In light of the current anti-trade sentiment criticizing the ISDS system, USCIB and its global network including the Business and Industry Advisory Council to the OECD believe that it is crucial that the discussion is put back in the right perspective and that common misrepresentations are effectively addressed. The OECD, as an internationally recognized forum for fact-based and objective analysis, and with a long track record of fostering open, transparent and non-discriminatory investment policies, should play an important role in providing objective analysis, thus helping to shape further understanding about the issues that are at stake. The BIAC paper on ISDS contains concrete proposals for future OECD analysis in this area.

USCIB has been a strong advocate for ISDS, and Shaun Donnelly, vice president for investment, trade and financial services, has been travelling around Europe making the case for a strong Trans-Atlantic Trade and Investment Partnership and explaining the importance of ISDS provisions in that and other international trade agreements.

Staff Contact:   Alice Slayton Clark

Director, Investment, Trade and China
Tel: 202.682.0051

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