Thursday, March 26, 2015

TPP Leak

WikiLeaks just released the full text of the secret Trans-Pacific Partnership (TPP) chapter on “Investor State Dispute Settlement.”1 It’s terrifying. The TPP is even worse than we thought. The leaked chapter shows how the TPP would set up a shadowy international “court system” that would have no accountability to the public.

  Fight for the Future email
WikiLeaks releases today the "Investment Chapter" from the secret negotiations of the TPP (Trans-Pacific Partnership) agreement. The document adds to the previous WikiLeaks publications of the chapters for Intellectual Property Rights (November 2013) and the Environment (January 2014).

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.

Julian Assange, WikiLeaks editor said: "The TPP has developed in secret an unaccountable supranational court for multinationals to sue states. This system is a challenge to parliamentary and judicial sovereignty. Similar tribunals have already been shown to chill the adoption of sane environmental protection, public health and public transport policies."

Current TPP negotiation member states are the United States, Japan, Mexico, Canada, Australia, Malaysia, Chile, Singapore, Peru, Vietnam, New Zealand and Brunei. The TPP is the largest economic treaty in history, including countries that represent more than 40 per cent of the world´s GDP.

  Wikileaks
Secret Trans-Pacific Partnership Agreement (TPP) - Investment Chapter
An ambitious 12-nation trade accord pushed by President Obamawould allow foreign corporations to sue the United States government for actions that undermine their investment “expectations” and hurt their business, according to aclassified document.

The Trans-Pacific Partnership — a cornerstone of Mr. Obama’s remaining economic agenda — would grant broad powers to multinational companies operating in North America, South America and Asia. Under the accord, still under negotiation but nearing completion, companies and investors would be empowered to challenge regulations, rules, government actions and court rulings — federal, state or local — before tribunals organized under the World Bank or the United Nations.

[...]

The sensitivity of the issue is reflected in the fact that the cover mandates that the chapter not be declassified until four years after the Trans-Pacific Partnership comes into force or trade negotiations end, should the agreement fail.

[...]

“This is really troubling,” said Senator Charles E. Schumer of New York, the Senate’s No. 3 Democrat. “It seems to indicate that savvy, deep-pocketed foreign conglomerates could challenge a broad range of laws we pass at every level of government, such as made-in-America laws or anti-tobacco laws. I think people on both sides of the aisle will have trouble with this.”

[...]

The United States is party to 51, including the North American Free Trade Agreement. Administration officials say they level the playing field for American companies doing business abroad, protect property from government seizure and ensure access to international justice.

But the limited use of trade tribunals, critics argue, is because companies in those countries do not have the size, legal budgets and market power to come after governments in the United States. The Trans-Pacific Partnership could change all that, they say.

[...]

But as long as a government treats foreign and domestic companies in the same way, defenders say, it should not run afoul of the trade provisions. “A government that conducts itself in an unbiased and nondiscriminatory fashion has nothing to worry about,” said Scott Miller, an international business expert at the Center for Strategic and International Studies.

  NYT
And what government would THAT be? None that we have on the planet to date. The old “if you’re not doing anything wrong, you have nothing to fear,” argument applied to governments.
People have pointed out how KORUS -- the "free trade" agreement that the US signed with South Korea a few years ago, which included draconian intellectual property rules, is "the model" for "modern free trade agreements." It was used as the basis for ACTA, and now it's often pointed to as the model for the TPP as well. When KORUS was first being debated, we wondered why a "free trade" agreement would include rules for stricter monopolies, as that seemed like the exact opposite of free trade. Free trade is about knocking down the walls to protectionism, not building more monopoly power. And yet, that's exactly what it did -- creating tremendous problems to the point that South Korea is now looking for ways to get out of the intellectual property requirements of the agreement.

And yet, defenders of the TPP still point to KORUS as the "model" for TPP and talk it up as if it's been a wonderful and successful agreement. However, it seems that others are noticing that there doesn't appear to be any "free trade" in this "free trade agreement." Instead, it's purely mercantilist cronyism, designed to limit economic growth and public welfare, to benefit a few large legacy companies.

  TechDirt
As we pointed out just recently, the USTR relies heavily on Industry Trade Advisory Committees (ITACs), which are deeply involved in these things. Members get access to the documents -- much more access than even Congress, and certainly a lot more access than the public which gets none at all. The IP ITAC is almost entirely made up of legacy industry players who come from a different era, and who know little about today's innovation. In fact, they tend to fight against innovation. As Lee notes, the USTR used to work mostly with exporters -- companies who ship stuff to foreign countries, and their general outlook on everything is from that perspective. But that makes no sense when you're talking about information.

[...]

USTR flat out rejected a recent attempt to put copyright law expert Andrew Bridges on the IP ITAC. Bridges is the person you should thank for having music in your pocket, because he defended the legality of the first MP3 player when the RIAA tried to sue it out of existence. He's also worked closely with a ton of internet companies and knows better than just about anyone I know how innovation works these days.

[...]

But the really concerning part is the insane revolving door between IP maximalist industry players and the USTR.

[...]

The USTR may claim it's trying to help promote American jobs, but it really looks like it's their own jobs that are most important to them.

  TechDirt
...but hey, do what you want...you will anyway.

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