THE European Commission tried to put a new gloss on an unpopular trade deal yesterday with a second rejig of pro-capitalist dispute mechanisms.

EU Commissioner for Trade Cecilia Malmstrom unveiled the latest proposals for the controversial investor-state dispute settlement (ISDS) mechanism, which has threatened to scupper the Transatlantic Trade and Investment Partnership (TTIP).

TTIP is currently being negotiated in secret between shadowy European and US bureaucrats.

It has faced opposition over a number of issues, especially ISDS, now rebranded the investment court system (ICS).

It allows foreign companies to sue governments for actual or hypothetical losses that result from their policies.

Campaigners against the deal have said that this has already led to a race to the bottom on health and safety, consumer and labour rights in signatory countries to similar trade deals.

Under the new plan, disputes would be settled by public tribunals staffed by judges selected at random from a pool of 15.

The pool would be chosen jointly by the EU and US, with five coming from each side and five more from countries outside the agreement.

Ms Malmstrom insisted that national sovereignty would be “fully respected and enshrined in black and white.”

But critics pointed out that the new ICS system would not apply to the existing Comprehensive Economic Trade Agreement (Ceta) with Canada and that the US may simply refuse to accept it.

The proposal ignores the views of 145,000 respondents to the European Commission’s consultation who rejected any form of ISDS.