scholarly journals Investor-State Dispute Settlement and the Future of the Precautionary Principle

2016 ◽  
Vol 5 (2) ◽  
pp. 449-486
Author(s):  
Haydn Davies

Abstract The proliferation of bilateral investment treaties and investment chapters in trade megatreaties and the associated increase in the preference of investors for investor-state dispute settlement has given rise to concerns that the regulatory sovereignty of both developed and developing states might be compromised. In response to these concerns many trade agreements (including the recently concluded Comprehensive Economic Trade Agreement between the European Union (EU) and Canada) have incorporated provisions designed to protect the regulatory sovereignty of nation states, especially in relation to labour standards, public health, phytosanitary and environmental protection. This paper examines the nature and scope of environmental protection measures in investment chapters and attempts to analyse the extent to which these measures will, in practice, prevent challenges by investors seeking to chill or prevent environmental regulations which might threaten their investments. The analysis concentrates particularly on measures based on the precautionary principle and uses the current EU restrictions on neonicotinoid pesticides as a case study. The paper concludes that the measures included in investment chapters designed to prevent such challenges by investors will not necessarily achieve the desired level of protection for environmental regulatory sovereignty.

2020 ◽  
Vol 11 (3) ◽  
pp. 481-497
Author(s):  
Sophia PAULINI

This contribution analyses whether the Court of Justice of the European Union (CJEU) provides clarifications on the normative implications that the precautionary principle entails in the context of Regulation 1107/2009, laying out the EU authorisation procedure for pesticides, in its recent judgement in Case C-616/17. In this judgement, which is a response to a request for a preliminary ruling by a French criminal court on the compatibility of certain aspects of Regulation 1107/2009 with the precautionary principle, the CJEU concludes that the questions of the referring court reveal nothing capable of affecting the validity of the regulation. According to the CJEU, to ensure conformity with the precautionary principle, the EU legislature must establish a normative framework that makes available to competent authorities sufficient information to adequately assess the risks to health resulting from the pesticide in question. However, the CJEU’s substantive analysis of the compatibility of the different aspects of Regulation 1107/2009 with the precautionary principle is not conducted concretely in light of this legal standard, but constitutes a mere testing of the general adequacy of Regulation 1107/2009. Furthermore, the CJEU’s judgement examines Regulation 1107/2009 in a vacuum without considering problems that have occurred in its implementation or application.


2008 ◽  
Vol 33 (3) ◽  
pp. 257-294 ◽  
Author(s):  
Ljiljana Biuković

AbstractAmendments made to the Central European Free Trade Agreement (CEFTA) in 2006 mark significant developments in the economic integration of the Western Balkans. Among those amendments were changes to the Agreement's dispute resolution mechanism. This article analyzes the latest developments in economic integration in the Western Balkans and examines the nature and operation of the dispute resolution mechanisms used in CEFTA. Explanations for important changes to the dispute settlement process in CEFTA are suggested by examining the context of the members' economic, political, social and legal surroundings. The article surveys ongoing tendencies in the development of dispute resolution mechanisms in other regional trade agreements, in particular those utilized by the European Union (EU), as a means of exploring the rationale behind the new CEFTA. It argues that the EU practice—developed in EU association agreements with third countries—has inspired the 2006 amendments to the CEFTA dispute resolution mechanism.


2018 ◽  
Author(s):  
Matthew Rimmer

Investor-State Dispute Settlement (ISDS) poses significant challenges in respect of tobacco control, public health, human rights, and sustainable development. Two landmark ISDS rulings provide procedural and substantive guidance on the interaction between ISDS and tobacco control. The ISDS action by Philip Morris against Uruguay in respect to graphic health warnings raised important procedural and substantive issues. The ISDS matter between Philip Morris and Australia over the plain packaging of tobacco products highlighted matters in respect of abuse of process. In the Trans-Pacific Partnership (TPP), there was a special exclusion for tobacco control measures in respect of ISDS. There was also a larger discussion about the role of general public health exceptions. In the Comprehensive Economic and Trade Agreement (CETA), there was a debate about the application of ISDS to intellectual property rights. In the European Union, there has been discussion of the creation of an international investment court. In the renegotiation of the North American Free Trade Agreement (NAFTA), there has even been calls to abolish ISDS clauses altogether from both Republicans and Democrats. This article concludes there is a need to protect tobacco control measures implementing the WHO Framework Convention on Tobacco Control 2003 from further investor and trade challenges.


2018 ◽  
Vol 29 (5) ◽  
pp. 197-200 ◽  
Author(s):  
Robin Blake

In May 2018, the European Union (EU) banned all outdoor uses of three neonicotinoid insecticides due to concerns about adverse effects on pollinators following their use. Neonicotinoids continue to be used in other areas of the world such as North America. However, increasing scrutiny following the European Union decision threatens their availability as a control tool for farmers in these regions too. This article aims to provide an update on the current status of neonicotinoids, including a brief overview of the reasons behind the European regulatory decision, alternative control strategies that are available to farmers, how the situation in Europe might influence what will happen in other regions of the world, and what this means for future regulatory decision-making. The author concludes that the recent neonicotinoid ban in the EU represents an overly conservative approach to pesticide regulation, and in using the Draft Bee Guidance Document, one where the majority of pesticides currently on the market will fail. There is no definitive scientific evidence that neonicotinoids are the primary cause of declines in bees, and although banning these insecticides is the factor that humans have the greatest control over, it represents an overly simplistic solution to a very complex problem, and one that alone may not improve bee health. Whilst extreme pressure from environmental NGOs and politicians have undoubtedly helped shape these decisions, it is imperative that the regulatory process allows scientific innovation to help achieve food security and protect the environment. Ruling against recent lawsuits brought by Syngenta and Bayer CropScience to contest the bans on their respective neonicotinoids, the General Court of the European Union, said that the EU's"precautionary principle" meant that the EU could take measures if there was scientific uncertainty about risks to human health or the environment. The precautionary principle lies at the heart of EU regulation and effectively puts the burden of proof to demonstrate that a pesticide poses no unacceptable risk onto the manufacturers. Given that neonicotinoids are insecticides, and insecticides kill insects, it is not difficult to connect how the use of the precautionary principle led to the neonicotinoid ban. However, this principle is at odds with the desire to innovate – the so-called "Innovation principle" – "whenever policy or regulatory decisions are under consideration the impact on innovation as a driver for jobs and growth should be assessed and addressed". The innovation principle and precautionary principle should be complementary, recognising the need to protect society and the environment while also protecting the EU's ability to innovate. Neonicotinoids represent one such innovation where their highly targeted nature, especially as seed treatments, makes them effective within Integrated Pest Management (IPM) strategies, in comparison to alternatives such as pyrethroids, organophosphates and carbamates, that are known to be highly toxic to bees (and other non-target invertebrates) through spray drift. Replacing neonicotinoids with these products will also result in higher overall environmental risks, including risks to taxonomic groups that are not adversely affected by neonicotinoids such as birds, mammals and fish, together with higher risks to humans, particularly applicators. The HFFA report recommends that potential environmental concerns must be balanced against the need to boost agricultural productivity, and if such an assessment results in societal benefits outweighing the costs, then the technology should be applied. The hope is that regulators in other regions of the world will judiciously balance innovation and precaution, and base decisions on science rather than opinion or fear, and thus allow the continued use of neonicotinoids as vital tools in the global fight against crop pests.


2003 ◽  
Vol 75 (11-12) ◽  
pp. 2535-2541 ◽  
Author(s):  
J. de Bruijn ◽  
Bjorn Hansen ◽  
S. Munn

This paper discusses the practical implementation of the precautionary principle in the area of management of industrial chemicals in the European Union. An analysis of a number of recent cases where the precautionary principle was invoked shows that the main reason for doing so were the uncertainties in the risk assessment (or the underlying effects or exposure data), which were, according to the scientific experts, so high that the "normal" level of certainty could not be obtained. The challenge for the future is to try to develop general guidance or rules that will support the policymakers in their decision as to whether this uncertainty is so large that action is warranted or whether it is acceptable to wait until further information has become available.


2012 ◽  
Vol 61 (2) ◽  
pp. 389-426 ◽  
Author(s):  
Bryan Mercurio

AbstractSeveral recent detentions of generic pharmaceutical products transiting through the European Union (EU) for suspected infringements of intellectual property rights raised serious concerns for public health advocates and threatened to expose systemic problems existing in the World Trade Organization's (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The detentions not only garnered international attention, but India and Brazil formally began WTO dispute settlement proceedings against the EU. The parties recently reached a mutually agreed solution to the matter and the proceedings have been halted, leaving unanswered the complex legal and technical questions raised by the detentions of pharmaceuticals in transit. Despite a solution being reached in this dispute, the matter will undoubtedly resurface in the near future for a number of reasons. For instance, the EU is attempting to export its laws to its trading partners through the negotiation of free trade agreements and in other forums such as the recently concluded Anti-Counterfeiting Trade Agreement which increases the likelihood that similar detentions will occur at some point in the future. Moreover, recent trends in international intellectual property law indicate a move towards increased protection and enforcement in at least the short and medium term. The issue therefore offers the opportunity for rich legal analysis into an underexplored, yet increasingly important, aspect of WTO law.


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