TTIP will tighten corporate noose
B. McPherson
For those who believe that giant corporations rule, the
proposed Transatlantic Trade and Investment Partnership(TTIP) is an ominous
development. For proponents, it will bring about a new era of free trade
between the USA and the EU.
The two great political entities are long time trade
partners with few serious disputes over tariffs and markets. This proposed new
trade agreement would eliminate even more of them. Together the USA and EU
trade represents 60% of global GDP.
Negotiations have taken place largely out of the public’s
purview but in March 2014 the German newspaper Die Zeit, leaked some of the
content
Proponents of TTIP assure the public that this agreement
once implemented will reduce artificial barriers to trade, reduce or remove
tariffs and result in cheaper goods for consumers. Those who oppose the
agreement are not convinced.
Key to environmentalists in the EU is the assurance that
their higher standards for environmental protections will not be eroded. The text
of the agreement(that which was leaked) seeks to reassure and speaks of
“equivalents”.
Another huge objection to the agreement is the profit
protection clause. It allows corporations to sue if a government refuses to
comply with the agreement. For instance if a locally elected government refuses
to allow fracking in its area, they may be sued by the corporation for damages.
If a federal government decides to nationalise an industry, they may be sued
for damages. Disputes would no longer be settled within a sovereign nation but
in the pervue of a tribunal – Investor-state Dispute Settlements(ISDS).
Comment on TTIP is speculation at this time because the
negotiators have opted to keep their work secret from the public.
Canada’s Conservative government negotiated a trade deal
with China a year ago that gives investors protection from loss of profits. An
example would be if a different government were elected that opted to not allow
oil pipelines to the Pacific Coast. Investor corporations would have the right
to sue the government(and by extension the people of Canada) for their losses
in investments. While it seems far fetched that a trade tribunal can override
national courts, it has happened in Canada. And it’s happened with our largest
trading partner and neighbour over disputes on the NAFTA agreement.
Now litigious US companies are bullying
the Canadian government. In one instance, it was about the right to shoot 360
caribou on a Canadian nature preserve. In another, it was about the large-scale
extraction of tar sands that had been limited in one Canadian province due to
environmental protection considerations.
Der Spiegel
Sources:
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