Press Release – Joint Media Statement
June 15, 2026 : The ten ASEAN countries and Australia and New Zealand have agreed to review investor rights to sue governments known as Investor State Dispute Settlement (ISDS) in the updated AANZFTA agreement in the second half of 2026. Consensus of …
June 15, 2026: The ten ASEAN countries and Australia and New Zealand have agreed to review investor rights to sue governments known as Investor State Dispute Settlement (ISDS) in the updated AANZFTA agreement in the second half of 2026. Consensus of all governments is needed to remove or change ISDS in AANZFTA.
Over 80 civil society organisations across a majority of the 12 ASEAN- Australia -New Zealand Free Trade Agreement (AANZFTA) member countries* have signed an open letter urging governments to remove controversial Investor-State Dispute Settlement (ISDS) rules from the agreement in a review they will start discussing in Melbourne on 24 June 2026, before launching formal negotiations in October.
ISDS rules in AANZFTA and some other trade agreements enable foreign investors to claim billions of dollars from governments if they can convince an international tribunal that a change in law or policy would reduce their future profits and/or they were not consulted sufficiently about it, even if the change was in the public interest. There have been disputes over laws protecting workers’ rights, public health and the environment, including cases using ISDS in the AANZFTA to claim billions in challenges to court decisions to protect the environment and reduce carbon emissions.
Joseph Purugannan from Focus on the Global South: The investor state dispute settlement mechanism or ISDS has been widely recognized across the globe as a toxic element of free trade agreements. Yet despite the very clear arguments against it the wheels pushing for ISDS continue to turn. And the FTAS and investment agreements continue to be the main tools driving the corporate agenda. ASEAN countries also face specific threats related to the climate crisis and development policies because they are rich in critical minerals needed for the transition to renewable energy, which has increased global demand. The rush to mine critical minerals could see ISDS threats against national development policies from mining companies based in Australia, New Zealand or Singapore or other ASEAN countries using ISDS in the AANZFTA. and the threat of multi-billion dollar lawsuits could also present a chilling effect on efforts to strongly regulate these investments.
Jane Kelsey, New Zealand: Since 2017, successive New Zealand governments have said ‘no’ to ISDS. The multiple risks – legal and fiscal, impacts on Indigenous rights and environmental protections – are recognised as far too high, and the power that ISDS gives foreign investors to threaten crippling lawsuits over vital public policy decisions is both anti-democratic and breaches Te Tiriti o Waitangi. But existing trade agreements that have ISDS, like AANZFTA, remain a major problem. We call on all the parties to AANZFTA to follow the example of Aotearoa NZ in the forthcoming review and remove the threat of ISDS altogether, or at the very least allow us to exercise our sovereignty and remove its application to us.
Patricia Ranald, Australian Fair Trade & Investment Network (AFTINET): Growing numbers of ISDS cases by fossil fuel companies are threatening the urgent action needed to address the climate crisis. ISDS in AANZFTA has been weaponised by Australian billionaire Clive Palmer, who has registered his mining company in Singapore, claimed to be a Singaporean investor and is using ISDS in the AANZFTA to claim $AU120 billion from the Australian government because the company was refused coal mining and energy permits. The Australian government must implement its policy against ISDS and insist on its removal from AANZFTA.
Rachmi Hertanti, Transnational Institute (TNI): It is crucial for the Governments, especially in ASEAN countries, are aware of the risks and impacts of ISDS rules on the just energy transition agenda. Almost all ISDS lawsuits filed by investors contradict the rights of communities affected by environmental damage and health problems caused by investment projects in the extractive sector, particularly mining. The implementation of the ISDS mechanism will only prolong the impunity of extractive corporations, perpetuate asymmetrical relations between Corporations in the Global North and Global South exacerbate the climate crisis. The state’s obligation to protect the people’s rights is held hostage by the threat of investor lawsuits.
This letter from civil society groups urges the ASEAN-Australia-New Zealand governments to support the removal of ISDS provisions from AANZFTA.
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*AANZFTA member countries are: Australia, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, Vietnam.
Content Sourced from scoop.co.nz
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