Corporation Carte Blanche: Will US-EU Trade Become Too Free?
These are all factors that have led the German government to position itself as a key driving force behind TTIP thus far. Nevertheless, even the most ardent supporters of the agreement have serious doubts about one important point in the trade deal: its provisions for Investor-State Dispute Settlement (ISDS).
It may sound harmless, but it's not. The provisions would create a kind of special parallel legal system for corporations, essentially giving them carte blanche that would fall outside of national laws.
Here's how it would work: If a company felt somehow financially disadvantaged or its interests otherwise trod upon, it would have the right to submit a challenge to a three-judge arbitration court. The country in question gets one "judge," the company would be able to pick one and the third would either be agreed upon by the two parties or would be chosen from a list of qualified candidates. This private trade arbitration court would have the power to make rulings on huge damage payments if an investor believed its profits were reduced -- through a new national law, for example. The hurdles might be high for such a procedure, but the rulings would be final and not appealable.
Depriving Countries of Power
It would essentially deprive national justice systems of their power. And it could have dangerous side effects as well. Fears of large fines could considerably limit political maneuvering room for governments.
http://www.spiegel.de/international/business/criticism-grows-over-investor-protections-in-transatlantic-trade-deal-a-945107.html
