Reduced scope of application of ISDS in RCEP; negotiating partners still aim at end-2018

After an RCEP negotiation round held in Singapore in late August 2018, most negotiating partners are reported to have agreed to reduce the scope of application of the ISDS clause.

A senior official said that ISDS would not be applied on an MFN basis; accordingly, different RCEP members could agree to different dispute settlement regimes. It was also reported that India secured a commitment that disputes concerning performance requirement prohibitions would be excluded from the scope of ISDS. The 16-nation agreement is expected to be concluded by the end of 2018.