FT: Arbitration on trial: the US and UK’s fear of the supranational




May 2 | By: Alan Beattie. 

Brandishing the pen with which she has marked Britain’s uncrossable red lines, Theresa May is sallying forth into the Brexit negotiations with the EU. One of the prime minister’s trickiest demands is that Britain escapes the jurisdiction of the European Court of Justice, the EU’s highest judicial body, whose rulings Brexiters regard as an unconscionable infringement on national sovereignty.

Dislike of supranational courts that force changes in domestic policy is not confined to the UK’s rejection of the ECJ. The World Trade Organisation’s dispute arbitration system is under fire from US President Donald Trump’s administration, which has threatened to ignore its rulings. Protest against the burgeoning system of investor-state dispute settlement, in which companies can sue governments for damages, nearly sank a flagship EU-Canada trade deal last year.

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