Australia-Republic of Korea Free Trade Agreement negotiations

Fact Sheet: Investor-State Dispute Settlement (ISDS)

Fact Sheet: Investor-State Dispute Settlement (ISDS) [PDF 46 KB]

The Korea-Australia Free Trade Agreement (KAFTA) Investment Chapter and ISDS provisions do not prevent the Government from regulating in the public interest and contain explicit safeguards to protect legitimate government regulation in areas such as public health and the environment. These include:

ISDS does not apply to decisions made concerning investments which are subject to review under Australia’s foreign investment policy.

An ISDS claim can only be made on the basis of a breach of an investment obligation:

Australian investors in Korea will be able to use the ISDS mechanism to protect their investments.