Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, with reference to pages 3-5 paragraphs 1-9 of the report by UN Special Rapporteur entitled Paying polluters: the catastrophic consequences of investor-State dispute settlement for climate and environment action and human rights, published on 13 July 2023, if she will make an assessment of the potential merits of not including the investor state dispute settlement in future trade agreements.

Investor-State Dispute Settlement (ISDS) is an effective means of resolving investment disputes. The UK has investment agreements containing ISDS with around 90 trading partners. There has not been a successful ISDS claim brought against the UK, nor does ISDS hinder our right to regulate in the public interest, including in areas such as the environment and human rights. This right is recognised in international law.

Where the UK negotiates ISDS, in line with modern international best practice, it ensures the mechanism delivers fair outcomes of disputes, has independent arbitrators bound by high ethical standards, and that proceedings are transparent.