Kinda yes, this trade agreement does not include the kind of investor-State arbitration (ISDS) we saw in TTIP. Its dispute settlement provisions are different and do not give individual companies the right to sue a government for regulatory decisions. It’s much more like what happens in the WTO.
In fact, the treaty doesn’t even regulate investor-to-state dispute settlement between investors and states. On this topic, it just focuses on state-to-state dispute mechanisms for covered provisions, WTO style from my understanding.
The treaty discusses a rebalancing mechanism in the dispute settlement chapter. So, a party state may to take counter-measures if a covered measure by the other nullifies or substantially impairs benefits. So with this treaty, corporations have no standing to sue against national policy.
Still, any investment protections that apply for EU investors in Mercosur countries (or vice versa) will continue to derive from existing bilateral investment treaties (the BITs) between individual EU countries and Mercosur partners, not from the EU–Mercosur trade deal itself. These BITs are still valid until their expiration (if it exists), or a party terminates it. But again, these are separate treaties from this trade agreement.
Kinda yes, this trade agreement does not include the kind of investor-State arbitration (ISDS) we saw in TTIP. Its dispute settlement provisions are different and do not give individual companies the right to sue a government for regulatory decisions. It’s much more like what happens in the WTO.
In fact, the treaty doesn’t even regulate investor-to-state dispute settlement between investors and states. On this topic, it just focuses on state-to-state dispute mechanisms for covered provisions, WTO style from my understanding.
The treaty discusses a rebalancing mechanism in the dispute settlement chapter. So, a party state may to take counter-measures if a covered measure by the other nullifies or substantially impairs benefits. So with this treaty, corporations have no standing to sue against national policy.
Still, any investment protections that apply for EU investors in Mercosur countries (or vice versa) will continue to derive from existing bilateral investment treaties (the BITs) between individual EU countries and Mercosur partners, not from the EU–Mercosur trade deal itself. These BITs are still valid until their expiration (if it exists), or a party terminates it. But again, these are separate treaties from this trade agreement.