Session 2 | SSDS in investment treaties: Rationale and policy issues
Mar 30, 2026 | 9:30 AM - 11:00 AM
CC12
Description
This session will examine in more detail policy issues associated with dispute settlement choices. With intense world-wide competition for investment and concerns about low levels of investment in some domestic economies, SSDS may be preferred in some cases to avoid ISDS benefits for investment abroad creating unwanted incentives for the off-shoring of investment that is needed at home. Some free trade proponents couple these concerns about ISDS incentives with advocacy of SSDS for investment as a way to avoid possible effects of ISDS in undermining public and parliamentary support for broad free trade agreements. SSDS may also be chosen in some cases to achieve better protection of policy space and public finances, more government input into treaty interpretation or to reduce preferences for foreign over domestic investors. The traditional reasons for hesitancy with regard to SSDS include complaints that some aspects involve more political input than for ISDS, uncertainty about government willingness to claim or the effectiveness of remedies, or concerns that the investment promotion goals of investment treaties would suffer. The session will address these and other aspects as governments and others discuss imperfect alternatives and consider how they might be improved.
