“Traditionally, this proposed political empowerment for corporations [ISDS] has been defended as a way to protect companies from arbitrary governments or weakened court systems in developing countries. But the expansion of the practice to first-world relations exposes that rationale as disingenuous. Rule of law in the U.S. and EU is considered strong; the court systems are among the most sophisticated and expert in the world. Most cases brought against the United States under NAFTA have been dismissed or abandoned before an international court issued a ruling.
But companies have grown increasingly ambitious in recent years, with major outfits including Exxon Mobil and Dow Chemical challenging Canadian rules that apply to offshore oil drilling, hydraulic fracturing (“fracking”) and the use of pesticides.” Read more.