The most troubling aspect of the TPP, asserts Ellen Brown, is the Investor-State Dispute Settlement (ISDS) provision, which “first appeared in a bilateral trade agreement in 1959.” Brown continues:
According to The Economist, ISDS gives foreign firms a special right to apply to a secretive tribunal of highly paid corporate lawyers for compensation whenever the government passes a law … that [negatively impacts] corporate profits — such things as discouraging smoking, protecting the environment or preventing nuclear catastrophe.
Imagine a scenario in which the U.S., coming to its senses about climate change, imposes a
revenue-neutral carbon fee on fossil energy.
According to provisions of the TPP, a fossil-fuel company in a signatory nation could then sue the U.S. for lost profits, real or imagined.
The threat is not idle. In 2012, the U.S.’s Occidental Petroleum received an ISDS settlement of $2.3 billion from the government of Ecuador because of that country’s apparently legal termination of an oil-concession contract. Currently, the Swedish nuclear-power utility Vattenfall is suing the German government for $4.7 billion in compensation, following Germany’s phase-out of nuclear plants in the wake of Japan’s Fukushima disaster.
The ISDS provisions of the TPP are insidious:
the means by which signatory nations voluntarily surrender national sovereignty to the authority of corporate tribunals, without appeal, and apparently without exit provisions. No wonder the negotiations are secret.
