U.S. Tobacco Proposal Makes ISDS Carveout Optional; Builds On Existing Language

ATLANTA – The U.S. proposal on tobacco tabled here would give countries the option to prevent tobacco companies from challenging tobacco control measures under investor-state dispute settlement (ISDS), using a concept that already exists under the U.S. investment model called “denial of benefits,” according to informed sources. This concept, contained in Article 17 of the U.S. model bilateral investment treaty (BIT), allows parties to deny benefits of the investment chapter to a company that is owned by an investor from...