The German Magistrates Association, or DRB, did not approve the European Commission's 'Investment Court System' proposal wherein firms can file a lawsuit against governments in the Transatlantic Trade and Investment Partnership, or TTIP. The judges and prosecutors of the German association claimed that the court system proposal was not necessary nor was there a legal basis for its establishment.
The TTIP is a bilateral trade agreement between the U.S. and the European Union, reported The Independent. The trade involves easing up policies for exchange of various goods between countries included in both regions. The policies also cover other regulatory aspects such as safety laws, environmental laws and banking regulations.
The proposed Investment Court System would allow multinational companies to take governments to court as an avenue if these companies allege that a government hindered their investment opportunities, Sputnik News reported Feb. 3. The latest proposal replaced the Investor State Dispute Settlement, which was rejected by various nation regulators as well.
Opponents of the proposed system said that this court might push governments to defend their position by using consumer protections rights and environmental standards to counter companies'claims, the EU Observer reported. The DRB, who opposed the system, said the system has no factual basis, and that national courts are enough to settle potential lawsuits.
"The clearly implied assumption in the proposal for an International Investment Court, that the courts of the EU Member States fail to grant foreign investors effective judicial protection, lacks factual basis," said the DRB in a statement, as cited by Sputnik News. The group reasoned that any potential legal disputes should have been tackled when the TTIP was being set.
"Only in this way can the full legal rights to which any law-seeking party in Germany and the European Union is entitled, be guaranteed. The creation of special courts for certain groups of litigants is the wrong way forward," the group added.
