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Public online consultation on investor protection in TTIP - tradoc_152280.pdf
The "legitimate expectations" of the investor may be taken into account in the interpretation of the standard. However, this is possible only where clear, specific representations have been made by a Party to the agreement in order to convince the investor to make or maintain the investment and upon which the investor relied, and that were subsequently not respected by that Party. The intention is to make it clear that an investor cannot legitimately expect that the general regulatory and legal regime will not change. Thus the EU intends to ensure that the standard is not understood to be a "stabilisation obligation", in other words a guarantee that the legislation of the host state will not change in a way that might negatively affect investors.

But this still means that a government can't back out from a commitment made by a previous government, and will push corrupt governments into such commitments.

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Thu Jul 3rd, 2014 at 05:15:30 PM EST
While in my cases that might not be a problem, there are certain commitments that an investor should know a state cannot make, even if some transitory government coalition happens to make such promises.

Specifically, sovereign default must always remain outside the jurisdiction of any ISDS system. Likewise, regulation in pursuit of macroeconomic stability, environmental protection, consumer protection, protection of the right to organize and bargain collectively, and a number of other core state functions and core human rights must be categorically exempt from becoming the subject of such disputes.

Governments cannot sign away their citizens' right to strike, nor their right to breathe unpolluted air. Full stop. Any government promise to the contrary is prima facie nonsense, and any investor who relies on it deserves to lose his shirt.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Jul 4th, 2014 at 01:47:01 AM EST
[ Parent ]
JakeS:
there are certain commitments that an investor should know a state cannot make

Should we not suggest that specific language be drafted to make this point clear?

by afew (afew(a in a circle)eurotrib_dot_com) on Fri Jul 4th, 2014 at 03:54:39 AM EST
[ Parent ]
Jake has made a number of excellent points regarding a possible incompatibility between the TTIP and the Universal Declaration of Human Rights.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Fri Jul 4th, 2014 at 03:59:20 AM EST
[ Parent ]

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