A new Wikileaks-published leak from the secretive Trans Pacific Partnership (TPP) treaty reveals a January 2015 draft "Investment Chapter" of the agreement, where the investor-state dispute settlement (ISDS) mechanisms are set out. They allow companies to repeal nations' environmental, health and labor laws.
The ISDS work is led by the USA. Under its terms, a treaty-established tribunal would have the power to overrule national courts, and to award millions from tax-coffers to companies who believe that laws undermine their future profits.
The US Congress is preparing to hand Obama's trade rep fast-track authority to enter into TPP, though the terms of the deal can't be disclosed for at least four years (Congress only just got its first look at the TPP, and the USTR threatened to jail Members if they disclosed its contents to voters).
The TPP Investment Chapter, published today, is dated 20 January 2015. The document is classified and supposed to be kept secret for four years after the entry into force of the TPP agreement or, if no agreement is reached, for four years from the close of the negotiations...
The Investment Chapter highlights the intent of the TPP negotiating parties, led by the United States, to increase the power of global corporations by creating a supra-national court, or tribunal, where foreign firms can "sue" states and obtain taxpayer compensation for "expected future profits". These investor-state dispute settlement (ISDS) tribunals are designed to overrule the national court systems. ISDS tribunals introduce a mechanism by which multinational corporations can force governments to pay compensation if the tribunal states that a country's laws or policies affect the company's claimed future profits. In return, states hope that multinationals will invest more. Similar mechanisms have already been used. For example, US tobacco company Phillip Morris used one such tribunal to sue Australia (June 2011 – ongoing) for mandating plain packaging of tobacco products on public health grounds; and by the oil giant Chevron against Ecuador in an attempt to evade a multi-billion-dollar compensation ruling for polluting the environment. The threat of future lawsuits chilled environmental and other legislation in Canada after it was sued by pesticide companies in 2008/9. ISDS tribunals are often held in secret, have no appeal mechanism, do not subordinate themselves to human rights laws or the public interest, and have few means by which other affected parties can make representations.