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Foreign Investment: Dispute Resolution

Asked by Dr Simon OpherLabourDepartment for Business and TradeTabled Answered 27 March 2025UIN 40289

The question

To ask the Secretary of State for Business and Trade, what assessment he has made of the potential implications for the Government's environmental policies of Investor-State Dispute Settlement mechanisms.

Answered by Mr Douglas Alexander

The UK is party to 80 Bilateral Investment Treaties and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership that contain Investor-State Dispute Settlement (ISDS).

ISDS provides an independent means to resolve disputes with states where investors believe they have experienced arbitrary, discriminatory or unfair treatment or expropriation without compensation. ISDS does not remove the government’s right to regulate in the public interest, including with respect to the environment.

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