@al**bear wrote:
what it's for , is to make it, that whatever the US says, is the LAW
If you agreed a contract with another individual or company then that contract would state under which legal system any dispute would be decided.
Some contracts also lay out an arbitration procedure in the case of any breach of the contract by either party.
When you have nations making a trading agreements however things aren't quite so simple. The EU and the US are currently negotiating such a trade agreement which will have to say under which jurisdiction any disagreements must be settled. If the trade agreement were simply to state that disputes would be settled under US law then certainly the law would be "whatever the US says is the law" - likewise if disputes were to be heard in EU courts the US could make a similar claim.
The answer has to be an independent arbitration panel previously agreed between the trading partners which is where the "Investor State Dispute Settlement" system comes into play.
There are generally three members of the arbitration panel, one chosen by each of the parties and a third agreed upon by both parties.
