US backs arbitration for foreign investors

PARIS: A senior US official on Tuesday defended current mechanisms in place to resolve disputes with foreign investors, amid EU calls for the creation of an investment court in a bid to resolve a controversial issue holding up a massive EU-US free trade deal.

The EU’s trade commissioner Cecilia Malmstroem last week proposed creating an international investment court to allay concerns among Europeans that the arbitration panel foreseen in the deal would effectively allow companies to bypass national courts if they feel their investments are under threat.