Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Hansard source

The government is considering the inclusion of ISDS clauses in FTAs, on a case by case basis. It is important to remember that ISDS is not a new concept for Australia. We currently have ISDS clauses with 28 economies through four free trade agreements and 21 bilateral investment treaties. ISDS provides protection for those who choose to pursue new opportunities for Australia by investing abroad. The government has said that it is willing to consider the inclusion of ISDS provisions in the Trans Pacific Partnership Agreement if the balance of the package is in Australia's best interests and there are safeguards in ISDS for public welfare measures.

In the Korea-Australia Free Trade Agreement, Korea and Australia agreed to include an ISDS mechanism, which includes carve-outs and other safeguards in important areas such as public health and environment. In the -Australia Economic Partnership Agreement, Australia and Japan agreed not to include ISDS. JAEPA includes a review clause, which provides for future considerations of an ISDS mechanism. The different outcomes on ISDS in KAFTA and JAEPA reflect the government's case-by-case approach in the agreement reached during the negotiations.