Because corporations don't have enough rights and power: The TPP & "investor rights"

[cali]

The TPP is full of bad things, from copyright laws and regulations to food and drugs, but the worst thing about it is the amped up investor rights. We know how bad this chapter is due to last year's leak.

After three-and-a-half years of negotiation, the investment chapter of the Trans Pacific Partnership(TPP), a regional trade agreement being negotiated by countries across Asia and the Pacific, remains hotly contested. A key issue is the so-called investor-state dispute (ISDS) settlement provisions. Australia is the only country in the negotiations opposing the inclusion of ISDS, and is the only country to have signed a bilateral trade agreement with the US that excludes ISDS provisions.

Since the signing of the North America Free Trade Agreement (NAFTA), the US has required trading partners to include clauses in trade agreements that elevate the rights of foreign investors above domestic investors and, most importantly, above governments. Put bluntly, that makes international corporations more powerful than governments and limits the ability of those governments to introduce legislation and policies that promote and protect the interests of their citizens.

The result has seen a flurry of litigation by corporations suing governments for perceived losses. Over $365 million in compensation has been paid out to foreign investors since NAFTA came into effect in 1994, while $13.1 billion of further damages could result from pending claims.

Recently, US-based pharmaceutical company Eli Lilly announced it will sue the Canadian Government over a decision on a drug patent. Canada argues that the decision on the ADHD drug was in line with existing medicine patent standards, and a Canadian court decided not to hear Eli Lilly’s appeal. The corporation is seeking compensation through international arbitration established by ISDS.

In 2012, there were 58 new cases filed under ISDS, the highest number ever in one year, bringing the total number of known cases to 514.
<snip>

http://donttradeourlivesaway.wordpress.com/2013/08/01/tpp-the-fight-over-investment-rights/

Under previous presidential administrations, the United States signed a number of free trade agreements (FTAs) that grant foreign corporations extraordinary rights and protections beyond the rights of domestic companies. A little-known FTA mechanism called “investor-state” enforcement allows foreign firms to skirt domestic court systems and directly sue governments for cash damages (our tax dollars) over alleged violations of their new rights before UN and World Bank tribunals staffed by private sector attorneys who rotate between serving as "judges" and bringing cases for corporations. Using this extreme system, corporations have sued the U.S. government in foreign trade tribunals for enacting laws or regulations that “interfered” with the corporations’ expected profits. This “interference” has included essential environmental regulations, health laws, and domestic court decisions. These cases are not just threats to domestic U.S. policies. U.S. corporations have also used FTAs to attack public interest laws abroad.

If a corporation wins its private enforcement case, the taxpayers of the “losing” country must foot the bill. Over $380 million in compensation has already been paid out to corporations in a series of investor-state cases under U.S. FTAs. Of the nearly $14 billion in the 18 pending claims under U.S. FTAs, all relate to environmental, energy, public health, land use and transportation policies – not traditional trade issues.

<snip>

http://www.citizen.org/Page.aspx?pid=4083

A leaked draft of the Trans-Pacific Partnership (TPP) investment chapter has been published online by Citizens Trade Campaign, the same coalition that first published TPP proposals from the United States on intellectual property, regulatory coherence and drug formularies in late 2011. Draft texts are said to exist for some 26 separate chapters, none of which have ever been officially released by trade negotiators for public review.

“Americans deserve the right to know what U.S. negotiators are proposing in our names,” said Arthur Stamoulis, executive director of Citizens Trade Campaign. ”In the absence of transparency on the part of our government, we have a responsibility to share what information we receive about the TPP with the public.”

The new texts reveal that TPP negotiators are considering a dispute resolution process that would grant transnational corporations special authority to challenge countries’ laws, regulations and court decisions in international tribunals that circumvent domestic judicial systems.

“We are just beginning to analyze the new texts now, but they clearly contain proposals designed to give transnational corporations special rights that go far beyond those possessed by domestic businesses and American citizens,” said Stamoulis. ”A proposal that could have such broad effects on environmental, consumer safety and other public interest regulations deserves public scrutiny and thorough public debate. It shouldn’t be crafted behind closed doors.”

<snip>

http://www.citizenstrade.org/ctc/blog/2012/06/13/newly-leaked-tpp-investment-chapter-contains-special-rights-for-corporations/

[AndyA]

1. They need to dump all of the "free trade agreements"

They're all a Roman Holiday for corporations, and a blood bath for citizens.

[Scuba]

2. "Investor right" #1: Investors have the right to own the government.

[cali]

4. this is strong evidence that they already own a big chunk of it.

[Squinch]

3. Kick. Everyone needs to read this.

[djean111]

5. Well, this sort of thing will render our government totally useless.

Investors, it looks like, could declare Social Security taxes harmful, they can just sue over any regulation or law, it looks like.
The TPP looks like a starting point to make elections moot.

I don't much care what Hillary has to say about whatever it is she is making speeches about now - but I will be watching to see what she says about the TPP and Larry Summers.

[cali]

6. Hillary has been instrumental in the crafting of the TPP

That's certainly no secret.

[djean111]

7. Yes, I know - thanks to your wonderful coverage of this.

I am curious to see how she runs on this, if she runs - or will the details be kept secret until after 2016, I wonder.
Or maybe she and Bill will be Obama's ambassadors for this, trying to make it palatable.

[cali]

8. thank you! I really appreciate you posting in these TPP threads

I think this is such a vitally important issue and it deserves a lot more attention.

[LuvNewcastle]

9. K&R n/t

[woo me with science]

10. Very important thread.

Thank you, Cali.

[cali]

11. thanks for the kick, wmws

the way I see it is that there can't be too many threads on the TTP, the TTIP and the TPA. (don't you just hate all those initials? I shouldn't be so lazy and I should post the full names)

[ljm2002]

12. Thanks cali...

...this TPP thing is outrageous, even compared to the previous trade agreements. The whole process reeks.

We need to stop it. I have sent letters to my Senators and my Representative and will continue to monitor this issue. It's like members of the government don't even care that they have been excluded from reviewing materials, while corporate representatives are allowed full access. Allowing this to go forward is just another form of appeasement, and it will end the way appeasement always ends: those doing the appeasing will be steamrolled, which is what our Congress is setting itself up for on this.

K&R

[cali]

13. thank you so much. Maybe it would be encouraging to know that

I do think that quite a few members of Congress do care and have expressed that. Even better, from a practical pov, is that thanks to what is quite an odd coalition in the house, there's a good chance of stopping the Trade Promotion Authority from passing. Stop that and both the TPP and TTIP can't be enacted.

cheers!

[snagglepuss]

14. k & r