The resolution was approved by the majority of the parliament with 436 ‘Yes’ votes coming up against 241 ‘No’ votes in Strasbourg on Wednesday in hopes of influencing the TTIP negotiations between European Commissioner for Trade Cecilia Malmstrom and the USA. Washington insists that for negotiations to be successful a dispute body must be incorporated into the final agreement.
The resolution, introduced by European Parliament President Martin Schulz, seeks to replace the Investor State Dispute Settlement (ISDS) mechanism a new “more transparent” system of dispute resolution instead of using private arbitration panels to challenge government in a trade disagreements.
The vote signals “that the old system of investor-state dispute settlement should not and cannot be reproduced in TTIP,” Malmstrom said in a statement.
This system should be “subject to democratic principles and scrutiny”, in which disputes are processed “in a transparent manner”, by “publicly appointed, independent professional judges” and “in public hearings”. It should include “an appellate mechanism,” respect the jurisdiction of EU and member state courts and ensure that private interests “cannot undermine public policy objectives”, says the text.