VCI comments: plenary debate on ISDS in German parliament

A unique opportunity for reform

Also for many chemical companies, investment protection agreements set an important international framework in order to protect investments from expropriation. In the view of VCI, it is important to find the right balance between investor protection an d the right to regulation by the legislator. One approach towards the necessary reform for the instrument of Investor-to-State Dispute settlement might be to set up an international commercial court.

Today the Bundestag (German parliament) held a plenary debate on Investor-to-State Dispute Settlement (ISDS). The German chemical industry association VCI takes this opportunity to welcome the societal debate on investor protection as triggered by TTIP. Investment protection agreements set an important international framework also for many globally operating chemical companies, in order to protect investments from expropriation.

The VCI’s director-general Utz Tillmann adds: “It is important to discuss the right balance between investor protection and the right to regulation by the legislator. Our association, too, sees a need for reform where the instrument of ISDS is concerned. One approach might be to set up an international commercial court for appeals.”

Tillmann also emphasizes that excluding this topic from the TTIP negotiations would be totally wrong: “That would be the proverbial head-in-the sand strategy. Existing problems are not solved, and existing treaties remain in force without any change.” Instead, so Tillmann, the EU and the USA should agree on substantial reform under TTIP.

The VCI represents the politico-economic interests of over 1,650 German chemical companies and German subsidiaries of foreign businesses. For this purpose, the VCI is in contact with politicians, public authorities, other industries, science and media. The VCI stands for over 90 percent of the chemical industry in Germany. In 2014 the German chemical industry realised sales of more than 193 billion euros and employed 442,500 staff.

Contact: VCI Press Dept., Phone: +49 69 2556-1496, E-Mail: presse@vci.de
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Jürgen Udwari

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