Posts Tagged ‘TTP’

ISDS: the worst part of the TPP

October 2, 2015

TPP-investor-state-dispute-settlement-what-now-524-Sm-color-72-dpi-Source: What Now Cartoons.

Negotiations for the proposed Trans-Pacific Partnership agreement are essentially negotiations concerning business interests.  They reportedly are running into trouble on disagreements about dairy and auto parts imports and drug patents.

But from the standpoint of ordinary citizens, the most odious part of the TPP — and its sister proposals, the Transatlantic Trade and Investment Partnership agreement (aka TAFTA) and the Trade in Services Agreement — are the Investor-State Dispute Settlement provisions that allow an un-elected tribunal to penalize governments for enacting laws to protect the health and welfare of their citizens, if such laws unfairly deprive foreign corporations of expected profits.

Not compensation for actual losses, but compensation for hypothetical losses.

A letter signed by more than 100 legal scholars and former judges sums up the problem.

ISDS grants foreign corporations a special legal privilege, the right to initiate dispute settlement proceedings against a government for actions that allegedly cause a loss of profit for the corporation. 

Essentially, corporations use ISDS to challenge government policies, actions, or decisions that they allege reduce the value of their investments.  These challenges are not heard in a normal court but instead before a tribunal of private lawyers.

(more…)