Dara Calleary (Mayo, Fianna Fail)
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196. To ask the Minister for Jobs, Enterprise and Innovation the status of the recent European Commission proposals to reform the global investment regime into a public investment court system, in the context of the latest discussions on the Transatlantic Trade and Investment Partnership; and if he will make a statement on the matter. [41817/15]

Richard Bruton (Dublin North Central, Fine Gael)
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The EU Commission’s mandate to negotiate with the United States on a free trade agreement includes in its scope (paragraphs 22 and 23), investment protection. The stated aim of negotiations on investment is to secure the highest levels of liberalisation and highest standards of protection that both sides have negotiated to date. The mandate makes it clear that the inclusion of investment protection will depend on EU interests being met and on the final balance of the Agreement. Importantly, the mandate states that the objectives of any investment protection provisions would be without prejudice to the right of EU and the Member States to adopt and enforce measures necessary to pursue legitimate public policy objectives in a non-discriminatory manner.

The aim is to promote more two-way investment between the US and EU with high standards of protection for investors. The EU’s Free Trade Agreements seek to provide EU investors abroad with a level of protection similar to that which would obtain in the EU. Equally US investors in the EU expect common investment protection standards and common redress mechanisms, and not 28 different set of standards and 28 different redress procedures.

Ireland does not have Bilateral Investment Treaties with any third country. In Ireland, private property is protected by virtue of Article 43 of our Constitution. However, in some other EU member states the protection for foreign investors from expropriation is provided through Bilateral Investment Treaties with third countries. Nine member states have such Treaties already with the US. An EU-US Trade Agreement would replace these.

On the 8^thJuly 2015 the European Parliament voted for a resolution supporting the EU-US Trade Agreement including a reformed investment protection mechanism.

On the 12th November 2015, the EU Commission published and formally presented to the US its proposal for a new and more transparent system for resolving disputes between investors and states – the Investment Court System. This proposal is the outcome of a lengthy public consultation process with the Member States, the European Parliament, stakeholders and the public. The Commission’s proposal aims at safeguarding Government’s right to regulate and creates a new system composed of a first instance tribunal and an appeal mechanism based on clearly defined rules, with qualified judges and transparent proceedings. The proposal also includes additional improvements on access to the new system by small and medium sized companies. The new investment court system would replace the existing investor-to-state dispute settlement (ISDS) mechanism. The proposal is available on the Commission’s website at .

I welcome these improvements and the Commission’s efforts to follow up on the views expressed by Member States, the European Parliament and other stakeholders.