Responding to Public Concerns over Investor State Dispute Settlement Clauses In APEC Free Trade Agreements

Abstract

Prepared for a recent presentation for APEC Member Economies, this paper surveys how APEC Member Economies have responded to public-interest-based criticisms in ISDS through multilateral negotiations, treaty and investment agreement drafting and administrative measures. While no other APEC Member besides Australia has decided to forgo ISDS altogether, the language in APEC investment agreements shows clear progress towards acceptance of major public interest concerns in recent years. At the same time, there is no sign that a consensus is emerging among Members to amend the basic institutional features of ISDS.