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Alternatives-economiques.fr quotes Peter Kirby in an article on investment arbitration

Fasken
Reading Time 1 minute read

“Arbitrage d’investissement: une injustice d’exception au service des multinationales” by Mathilde Dupré, alternatives-economiques.fr

Alternatives-economiques.fr quotes Montréal lawyer, Peter Kirby, in an article on investment arbitration.

Of course, corporations do not always win. Nonetheless, the United Nations says that 60% of cases resulted in some form of compensation by the accused State pursuant to an unfavourable decision by the tribunal or a settlement agreement. Since investors have a monopoly on these actions, States never win: at best, they don’t lose. And the mere fact of being exposed to this type of action contributes to a kind of regulatory chill that may deter local, national or European authorities from making new regulations to protect consumers, workers or the environment – a risk of being taken before a tribunal that is skillfully exploited: “This is a lobbying tool in the sense that it is possible to say: ‘Okay, if you do that, I will bring an action against you for damages.’ In some cases, that will definitely alter behaviour,” as Peter Kirby of Fasken Martineau acknowledged.