Prof. Dr. Andreas Fisahn ISDS and CETA

CETA Agreement form renovated the ICSID procedural rules The Joint Committee shall appoint fifteen Members of the Tribunal. Each Case shall be decided by 3 members. Judges shall have expertise in public international law. It is desirable that they have expertise in particular, in international investment law, in international trade law Members of the Tribunal shall be paid a monthly retainer fee to be determined by the CETA Joint Committee. There will be an appellate body, recruited out of the 15 Judges mentioned above

“Deutsche Richterbund” (RB) claimed in accordance with the “MAGNA CARTA OF JUDGES of the CONSULTATIVE COUNCIL OF EUROPEAN JUDGES (CCJE), 17. November 2010 (CCJE (2010/3): Magna Charta (MC): Guarantee of the Independece. “It shall be statutory, functional and financial. … Decisions on selection, nomination and career shall be based on objective criteria and taken by the body in charge of guaranteeing independence.”

Richterbund: Independence is nor granted because: More expertice is necessary: in public-, labour-, tax- and social security law. Judges will probably choosen form among persons in existing arbitration bodies – not from among the best national judges. Six year term of office (one renomination) is to short. The fee (probably 2000 Euros) is to low.

Despite the refom of ISDS in CETA the main constitutional problems still exist beside procedural rules: MC of CCJE claims: “1. The judiciary is one of the three powers of any democratic state. Its mission is to guarantee the very existence of the Rule of Law….” Rule of law = general and equal law – ISDS statues special rights, privileges and a special, concurrent jurisdiction for Investors:

CETA Article 8.31 Applicable law and interpretation: 1. When rendering its decision, the Tribunal established under this Section shall apply this Agreement as interpreted in accordance with the Vienna Convention on the Law of Treaties, and other rules and principles of international law applicable between the Parties. Richterbund: A special jurisdiction for Investors is not necessary, because the contracting parties implemented the rule of law in their countries.

What makes the difference? Article 8.10 Treatment of investors and of covered investments: 1. Each Party shall accord in its territory to covered investments of the other Party and to investors with respect to their covered investments fair and equitable treatment and full protection and security in accordance with paragraphs 2 through 6. Investors may take a case to court, because challenge of fair end equitable treatment. What does that means: It depends – nobody knows exactly. In any case: not a part of national constitutions.

ANNEX 8-A EXPROPRIATION The Parties confirm their shared understanding that: 1. Expropriation may be direct or indirect: (a) direct expropriation occurs when an investment is nationalised or otherwise directly expropriated through formal transfer of title or outright seizure; and (b) indirect expropriation occurs if a measure or series of measures of a Party has an effect equivalent to direct expropriation, in that it substantially deprives the investor of the fundamental attributes of property in its investment, including the right to use, enjoy and dispose of its investment, without formal transfer of title or outright seizure. 2. The determination of whether a measure or series of measures of a Party, in a specific fact situation, constitutes an indirect expropriation requires a case-by-case, fact-based inquiry that takes into consideration, among other factors: (a) the economic impact of the measure or series of measures, although the sole fact that a measure or series of measures of a Party has an adverse effect on the economic value of an investment does not establish that an indirect expropriation has occurred; (b) the duration of the measure or series of measures of a Party; (c) the extent to which the measure or series of measures interferes with distinct, reasonable investment-backed expectations; and (d) the character of the measure or series of measures, notably their object, context and intent. 3. For greater certainty, except in the rare circumstance when the impact of a measure or series of measures is so severe in light of its purpose that it appears manifestly excessive, non-discriminatory measures of a Party that are designed and applied to protect legitimate public welfare objectives, such as health, safety and the environment, do not constitute indirect expropriations.

Differences to property protection in national Constitutions – different in every country but: Property usually do not include: “the distinct, reasonable investment-backed expectations;” Indirect Expropriation “to protect legitimate public welfare objectives” is in accordance. But: what is “legitimate” Question of balancing fundamental rights. National Constitution includes: rights of health safty and environment – not so CETA. => Different loads on the scale pan of Justitia

Investors are able to choose the comfortable court: Different decisions of national, constitutional courts and CETA Tribunal (different right)

Different legal consequence of illegitimate Indirect Expropriation (IE): – Example Germany: IE => law declared null and void – Ceta: IE => compensation Different legal consequence of illegitimate Direct Expropriation (DE): – Example Germany: DE => reasonable compensation ≠ market value – Ceta: DE => fair market value of the investment

supporters for the legal action against CETA will be taken to the Bundesverfassungsgericht. First Step: temporary legal protection against provisional application by EU Council (Art. 218 V TFEU)

Merci Gracie Thanks ευχαριστώ Tak Tesekür ederim Cпаcибо Gracias Dank u well Danke fürs Zuhören