Investor-State Dispute Settlement (ISDS): what’s the big deal?

What is ISDS all about? What’s the big deal? ISDS explained in 75 seconds.

In June 2013, Member States instructed the European Commission to negotiate a free trade agreement with the United States of America on their behalf – TTIP. The Investor-State Dispute Settlement (ISDS) clause is part of this mandate but has proven extremely controversial. ISDS is an international public law instrument that grants investors the right to use dispute settlement proceedings against a foreign government.

Supporters say that the instrument aims at protecting investors in order to promote investment. However, 88% of respondents to a public consultation on TTIP by the European Commission said that they did not want the ISDS clause.