Simon Birmingham (SA, Liberal Party, Minister for Trade) Share this | Hansard source

I have indicated the thought process and the benefits that we see, on balance, to Australian companies. I have also indicated that, in relation to future trade negotiations and deliberations, we will always seek to apply the best practice provisions that we can see as being available to Australia in our operations as a nation at any time. In relation to the EU, I think it's important not to completely mischaracterise the EU's stance. I'm advised that the EU has stated that investment agreements, where deemed necessary, should in principle be negotiated in parallel to FTAs. On 20 March this year the European Council adopted and published the negotiating directives for a convention establishing a multilateral court for the settlement of investment disputes. So the EU is looking at processes that do still provide for the impartial settlement of investment disputes. Both the EU-Canada Comprehensive Economic and Trade Agreement and the EU-Vietnam free trade agreement include ISDS and foresee setting up a permanent multilateral mechanism and contain such reference to it. So to simply take the argument and suggest that the EU have said 'no ISDS or equivalent' would be a misrepresentation of the position.

Of course, as I said, each area of a trade agreement, when we enter into new deliberations, ought to be thought of in a wise and sensible way about how we get the best possible outcomes in the interests of Australia—across goods, across services, across investment and across the whole range of different factors that a comprehensive trade agreement encompasses. When it comes to investment, providing certainty and stability around investment is important. I've outlined the reasons as to why we think, on balance, there's far greater upside for Australian businesses investing overseas than there are risks. Indeed, there are a number of cases and instances where Australian companies have taken advantage of those provisions and been successful, unlike the fact that nobody has ever been successful in using them against Australia.