No Greater Rights for Foreign Investors

No Greater Rights for Foreign Investors

Addressing International Investment Law’s Threat to Democracy and the Environment

Addressing International Investment Law’s Threat to Democracy and the Environment

AgendaAgenda

1) Issue: International Investment Law

2) Foreign investor rights

3) Investor-state arbitration

4) Reform investment law to protect communities

1) Issue: International Investment Law

2) Foreign investor rights

3) Investor-state arbitration

4) Reform investment law to protect communities

Shifting power from people to profitsShifting power from people to profits

Domestic lawsPeople have rights

Remedies go both ways

Heard in the national courts

Domestic lawsPeople have rights

Remedies go both ways

Heard in the national courts

PEOPLE

Shifting power from people to profitsShifting power from people to profits

Investment TreatyInvestors have rights

Remedies for investors only

Heard in international

tribunal

Investment TreatyInvestors have rights

Remedies for investors only

Heard in international

tribunal

Domestic lawsPeople have rights

Remedies go both ways

Heard in the national courts

Domestic lawsPeople have rights

Remedies go both ways

Heard in the national courts

PEOPLE PROFITS

Foreign Investor Rights

Non-discriminatory treatment:- Same as national investors- Same as other foreign investors

Compensation for direct/indirect expropriation:- Money to investor for physical confiscation- Money to investor for decrease in value due to a policy

Fair and equitable treatment (FET): - Vague and expansive- arbitrators will define- Recent interpretations: Not upset investor expectations,

e.g. by changing laws

Investor-State ArbitrationInvestor-State Arbitration

Domestic Courts

International Arbitration

Judges Elected or appointed judges

Procedure Domestic courts and rules

Decisions Appeals process

Investor-State ArbitrationInvestor-State Arbitration

Domestic Courts

International Arbitration

Judges Elected or appointed judges

Selected arbitrators

Procedure Domestic courts and rules

Decisions Appeals process

Investor-State ArbitrationInvestor-State Arbitration

Domestic Courts

International Arbitration

Judges Elected or appointed judges

Selected arbitrators

Procedure Domestic courts and rules

International sites and arbitration rules

Decisions Appeals process

Investor-State ArbitrationInvestor-State Arbitration

Domestic Courts

International Arbitration

Judges Elected or appointed judges

Selected arbitrators

Procedure Domestic courts and rules

International sites and arbitration rules

Decisions Appeals process Binding and final

What does “LOSING” mean to a country?

What does “LOSING” mean to a country?

Pay $$$ claimed by the foreign investor

Agree to stop public policy?+

Reform Options

• Make investors go to local courts first

• Withdraw from ICSID

• Exclude the really important laws

• Cut out investor-state arbitration

What can you do?What can you do?• Ask Congress to sign on to a letter to Hillary Clinton

requesting that the US not side with DRP on the Renco Dispute

• Educate on need to reform US investment agreements

• Spread word in local community:– visit the PCUSA website (live links to sermons and further

fact sheets)– visit the OxFam website (e-Action)– visit www.justinvestment.org

• Ask Congress to sign on to a letter to Hillary Clinton requesting that the US not side with DRP on the Renco Dispute

• Educate on need to reform US investment agreements

• Spread word in local community:– visit the PCUSA website (live links to sermons and further

fact sheets)– visit the OxFam website (e-Action)– visit www.justinvestment.org

For more information:

PCUSA website:www.pcusa.org/trade

For more information:

PCUSA website:www.pcusa.org/trade