My Lords, I thank noble Lords for allowing us to raise very important issues relating to ISDS. We have previously debated these in considering trade Bills and particular FTAs, and I have a great deal of sympathy for the arguments that have been made. My party supports a multilateral investment tribunal and appellate mechanism for the resolution of investment disputes. I have been studying the European Union’s recent proposals on moving towards a more global, multilateral element, and that is my party’s position.
As we have heard, these amendments are important because it is vital that the Government state their view. We knew that the noble Lord, Lord Grimstone, was a strong supporter of ISDS mechanisms because he said so during consideration of the Trade Bill, but, as has been mentioned, we then had FTAs that excluded them. There is now uncertainty regarding those who were excluded but who are now also members of the CPTPP.
Like other noble Lords, I have questions to ask the Minister. Does the UK support an appellate mechanism within the CPTPP? Will the UK, as an acceded member, seek to implement the mechanism through the CPTPP
in our relationships with Canada and Japan? Without the side letter, there is uncertainty. Will a company or a member be able to choose to resolve disputes through the CPTPP process or the FTA process? I am not aware of how that would operate, so some clarity from the Government will be important.
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It is vital for us to know because of the effect that the noble Lord, Lord Davies, indicated. We have discussed quite a lot about the potential chilling effect of both mechanisms being in place, but also their uncertainty as mechanisms. I am aware that, on most occasions, the UK is a beneficiary of ISDS processes: the statistics speak for themselves. Nevertheless, the UK can be a victim of these. We have to watch out for that.
We are making progress on removing the ability to have SLAPP mechanisms in other legal situations to remove what could well be vexatious approaches, and we would not want to see that through the mechanisms here. It is important that the Government provide clarity, not only with our relationships going forward but especially on Canada, because we are acceding to a treaty while negotiating an FTA where it has been agreed that part of the negotiations would be fed in by a review of ISDS. I simply do not know where we stand, so I hope that the Government might be able to provide some clarity.