Stiglitz and Hersh: The Trans-Pacific Free-Trade Charade

[eridani]

http://www.commondreams.org/views/2015/10/02/trans-pacific-free-trade-charade

International corporate interests tout ISDS as necessary to protect property rights where the rule of law and credible courts are lacking. But that argument is nonsense. The US is seeking the same mechanism in a similar mega-deal with the European Union, the Transatlantic Trade and Investment Partnership, even though there is little question about the quality of Europe’s legal and judicial systems.

To be sure, investors – wherever they call home – deserve protection from expropriation or discriminatory regulations. But ISDS goes much further: The obligation to compensate investors for losses of expected profits can and has been applied even where rules are nondiscriminatory and profits are made from causing public harm.

The corporation formerly known as Philip Morris is currently prosecuting such cases against Australia and Uruguay (not a TPP partner) for requiring cigarettes to carry warning labels. Canada, under threat of a similar suit, backed down from introducing a similarly effective warning label a few years back.

Given the veil of secrecy surrounding the TPP negotiations, it is not clear whether tobacco will be excluded from some aspects of ISDS. Either way, the broader issue remains: Such provisions make it hard for governments to conduct their basic functions – protecting their citizens’ health and safety, ensuring economic stability, and safeguarding the environment.

Imagine what would have happened if these provisions had been in place when the lethal effects of asbestos were discovered. Rather than shutting down manufacturers and forcing them to compensate those who had been harmed, under ISDS, governments would have had to pay the manufacturers not to kill their citizens. Taxpayers would have been hit twice – first to pay for the health damage caused by asbestos, and then to compensate manufacturers for their lost profits when the government stepped in to regulate a dangerous product.

[Enthusiast]

1. Kicked and recommended!

[bbgrunt]

2. k and r

[GoneFishin]

3. K & R

[Shandris]

4. Bah, what's everyone concerned about?

Your government has your best interests at heart, and no other. It's not like they're going to sit by and watch people die while companies make enormous profits or anything. I mean, where would you get that insane idea? The government has always been completely and totally honest. Well, except for when Republicans are in there, but that's not a problem right now.

So obviously this is the best thing in the world for The People. Let's get behind this! I'll be right there...I just need to get the foul taste of hypocrisy from my mouth real quick.

[hifiguy]

5. Kick and Rec!