Investment protection

A special investor-state dispute settlement (ISDS) clause in investment treaties can allow investors to get around the jurisdiction of national courts. New government measures, such as changes in national environmental legislation, can lead to substantial claims from investors who think the new rules may affect their profits. If the state has to take such potential claims into account every time it introduces new measures, this acts as a powerful brake on the introduction of new legislation, even if it is in the interest of society as a whole.

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