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Trans-Pacific Partnership Seen as Door for Foreign Suits Against U.S.
Key Excerpts from Article on Website of New York Times
Posted: March 30th, 2015
http://www.nytimes.com/2015/03/26/business/trans-pacific-par...
An ambitious 12-nation trade accord pushed by President Obama would allow foreign corporations to sue the United States government for actions that undermine their investment "expectations" and hurt their business, according to a classified 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 ... companies and investors would be empowered to challenge regulations, rules, government actions and court rulings ... before tribunals organized under the World Bank or the United Nations. The chapter in the draft of the trade deal, dated Jan. 20, 2015, [was] obtained by The New York Times in collaboration with the group WikiLeaks. [Its] 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. Under the terms of ... chapter, foreign investors could demand cash compensation if member nations "expropriate or nationalize a covered investment either directly or indirectly." Opponents fear "indirect expropriation" will be interpreted broadly, especially by deep-pocketed multinational companies opposing regulatory or legal changes that diminish the value of their investments. In 2013, Eli Lilly took advantage of a similar provision under Nafta to sue Canada for $500 million, accusing Ottawa of violating its obligations to foreign investors by allowing its courts to invalidate patents for two of its drugs.
Note: The above article further clarifies why the TPP is a pending disaster. For more, see this article, or watch the two minute video Former US Secretary of Labor Robert Reich made to educate the public about the dangers of the TPP.
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